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MACROECONOMIC POLICY: Government policy aimed at the aggregate economy, usually to promote the macro goals of full employment, stability, and growth. Common macroeconomic policies are fiscal and monetary.

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CHANGE IN AGGREGATE DEMAND: A shift of the aggregate demand curve caused by a change in one of the aggregate demand determinants. In essence, a change in aggregate demand is caused by any factor affecting aggregate demand EXCEPT the price level. This concept should be contrasted directly with a change in aggregate expenditures. You might also want to review the terms change in quantity demanded and change in demand, as well. The change in aggregate demand is comparable to the change in market demand. A change in aggregate demand is a change in ALL price level-aggregate expenditure combinations, meaning that each price level is matched up with a different aggregate expenditure (which is illustrated as a shift of the aggregate demand curve). This change in aggregate demand is caused by a change in any of the aggregate demand determinants. In contrast, a change in aggregate expenditures is a change from one price level-aggregate expenditure combination to the another (which is illustrated as a movement along a given aggregate demand curve).

     See also | aggregate demand | aggregate demand curve | aggregate demand determinants | price level | aggregate expenditures | change in aggregate expenditures | change in quantity demanded | change in demand | market demand |


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CHANGE IN AGGREGATE DEMAND, AmosWEB GLOSS*arama, http://www.AmosWEB.com, AmosWEB LLC, 2000-2024. [Accessed: April 25, 2024].


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MARKET

The organized exchange of commodities (goods, services, or resources) between buyers and sellers within a specific geographic area and during a given period of time. Markets are the exchange between buyers who want a good (the demand-side of the market) and the sellers who have it (the supply-side of the market).

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