aggregate meaning in economics

There are a number of aggregate measures in the national accounts, notably including gross domestic product or GDP, perhaps the most widely cited measure of aggregate economic activity. This modifier most often surfaces in the study of the AS-AD, or "aggregate market", model of the economy with such terms as aggregate demand and aggregate supply. In economics or business, it is frequently used. The goal of aggregate planning is to match 'demand' and 'supply' in … According to Mundell-Fleming’s equation, the aggregate demand for goods and services in an open economic system is given as: Y=C + I + G + (X-M) Where: Aggregate income refers to the value of all income that suppliers of production factors receives over a specified period. For instance, the output of an industry is an aggregate of the firms’ individual outputs within that industry. Construct an aggregate demand curve, and explain why the AD curve has a negative slope. Aggregate demand is, simply, the combined demand for all goods and services in an economy over a given period of time. Aggregate is a measure of economics of the amount total of the demand over all the finished goods and services produced in economy. Definition of Aggregate Demand. WikiMatrix The main implication of the model is that people's expectations as to the level of aggregate activity play a crucial role in actually determining this level of aggregate economic activity . Aggregate demand is an economic measurement of the total amount of demand for all finished goods and services produced in an economy. composed of mineral crystals of one or more kinds or … Aggregate demand refers to the total demand for final goods and services in the economy. Two other noted "aggregate" terms are aggregate expenditures and aggregate production function. an advisory body on general economic policy in Britain, composed of representatives of government, management, and trade unions: established in 1962; abolished in 1992. an economic programme in the former Soviet Union from 1921 to 1928, that permitted private ownership of industries, etc. Linked to mass costumisation, You want to reject this entry: please give us your comments (bad translation/definition, duplicate entries...), English Portuguese translation in context, Free: Learn English, French and other languages, Reverso Documents: translate your documents online, Learn English watching your favourite videos, All English definitions from our dictionary. « agglomeration economies | aggregate demand », Permalink: https://glossary.econguru.com/economic-term/aggregate, © 2007, 2008 Glossary.EconGuru.com. Aggregate demand. Short Run Aggregate Supply (SRAS) SRAS slopes upwards because as prices increase, it becomes more profitable for firms to … Economists typically use the Aggregate Output: Meaning, Determinants, Effects on Economy In the aggregate expenditure model, equilibrium is the point where the aggregate supply and aggregate expenditure curve intersect. How to … Keynesian economics is a theory of total spending in the economy (called aggregate demand) and of its effects on output and inflation…. All rights reserved. Aggregate planning generally includes combination of planned output, employment, sourcing, sub-contracting etc that can be planned for a period of 9-12 month. Aggregate meaning and definition of aggregate in economics terminology. Hence aggregate production planning is the exercise of developing an overall production plan of all products combined for a company. Learn more. aggregate demand definition: the total demand for goods and services within an economy: . Classical economics states that the factor payments made during the production process create enough income in the economy to create a demand for the products that were produced. 2.2 Aggregate supply Definition: Aggregate supply is the total value of goods and services produced in an economy over a given period of time. Both are used in the context of economic theories; When graphed together, the two determine the equilibrium; Differences between Aggregate demand and Aggregate supply Definition. Inflation : If consumers believe that inflation is going to increase or that prices will rise, they are more likely to make purchases in the short term, which results in rising aggregate demand. Term aggregate Definition: A common modifier for an assortment of economic terms used in the study of macroeconomics that signifies a comprehensive, often national, total value. Aggregate supply is used to show the amount of goods that can be produced at different price levels in a given time period – usually one year. This modifier most often surfaces in the study of the AS-AD, or "aggregate market", model of the economy with such terms as aggregate demand and aggregate supply. adj. Word ‘aggregate’ is derived from the Latin verb aggregate, the meaning of it is ‘add to’. Privacy Policy | Terms of Use | Disclaimer | Contact Us, https://glossary.econguru.com/economic-term/aggregate. Aggregate expenditure is defined as the current value of all the finished goods and services in the economy. The value will be equal to the value of aggregate output because it ultimately flows to the owner of the factors of production. Aggregate data is high-level data which is acquired by combining individual-level data. All rights reserved. As economic growth stagnated and the unemployment rate rose, the lack of consumer confidence led to less personal spending—thus decreasing the aggregate demand. clustered in a dense mass or head. Aggregate . Similarities between Aggregate demand and Aggregate supply. Define aggregate. Aggregate supply is the total value of goods or services in a market, sector or economy. Visit our news and trade ideas section Get the latest news and market analysis from our in-house experts. For example, aggregate demand indicates the total demand for production in the macroeconomy and aggregate supply indicates the total amount of that output produced. economic sanctions. The aggregate expenditure is thus the sum total of all the expenditures undertaken in the economy by the factors during a given time period. ©2021 Reverso-Softissimo. economic adjustment functions are nonlinear, with plants adjusting dispropor-tionately to large shortages; (ii) adjustments are often either large or nil, suggesting the presence of nonconvexities in the adjustment cost technologies; (iii) the bulk of average employmentfluctuations is accountedfor by aggregate, Meaning that once there are less people working, the flow of aggregate demand expenditure will decrease even more. English Collins Dictionary - English Definition & Thesaurus, Collaborative Dictionary     English Definition, portmanteau word: producer + consumer. of or relating to an economy, economics, or finance, capable of being produced, operated, etc., for profit; profitable, concerning or affecting material resources or welfare, concerned with or relating to the necessities of life; utilitarian, a doctrine that states that all cultural, social, political, and intellectual activities are a product of the economic organization of society, the study of the geographical distribution of economic resources and their use, the study of how geological deposits can be used as economic resources, a statistical measure representing an economic variable, the retail price index is an economic indicator of the actual level of prices, a payment to a factor of production (land, labour, or capital) in excess of that needed to keep it in its present use, (in Britain) the rent of a dwelling based on recouping the costs of providing it plus a profit sufficient to motivate the landlord to let it, any actions taken by one nation or group of nations to harm the economy of another nation or group, often to force a political change, the former European common market set up by the six member states of the European Coal and Steel Community in 1957, which broadened into the European Community and was replaced in 1993 by the European Union. Aggregate demand is the total quantity of goods and services that are demanded by consumers in an economy at any given price level (Baumol & Binder 1994). The reason being that there is lower employment and hence lower production and thus less earning to be consumed, resulting in less investment and less aggregate … 1. Aggregate output is the total value of goods and services produced in the economy during a certain period, usually one year. Aggregate demand is the gross amount of services and goods demanded for all finished products in an economy. … Distinguish between the microeconomic concept of demand for a product and the macroeconomic concept of aggregate demand. Other articles where Aggregate consumption is discussed: consumption: Macroeconomists are interested in aggregate consumption for two distinct reasons. Constituting or amounting to a whole; total: aggregate … The intuitions and meanings of the macro and micro diagrams are only distant cousins from different branches of the economics family tree. Since aggregate demand is measured by total expenditure of the community on goods and services, therefore, aggregate demand is also defined as ‘total amount of money which all sectors (households, firms, government) of the economy are ready to spend on purchase of goods and services. Aggregation in the futures markets is a process that combines of all futures positions owned or controlled by a single trader or group of traders into one aggregate position. aggregate meaning: 1. something formed by adding together several amounts or things: 2. small stones used in…. Fiscal Policy, from the Concise Encyclopedia of Economics The most immediate effect of fiscal policy is to change the aggregate demand for goods and services. You can complete the definition of economic aggregate given by the English Definition dictionary with other English dictionaries: Wikipedia, Lexilogos, Oxford, Cambridge, Chambers Harrap, Wordreference, Collins Lexibase dictionaries, Merriam Webster... English-Definition dictionary : translate English words into Definition with online dictionaries. aggregate: [adjective] formed by the collection of units or particles into a body, mass, or amount : collective: such as. Aggregate Exposure means, with respect to any Lender at any time, the sum of (a) the aggregate then outstanding principal amount of such Lender’s Term Loans and (b) the amount of such Lender’s Revolving Commitment then in effect or, if such Revolving Commitment has been terminated, such Lender’s Outstanding Revolving Credit. Search economic aggregate and thousands of other words in English definition and synonym dictionary from Reverso. 1 (Economics) a payment to a factor of production (land, labour, or capital) in excess of that needed to keep it in its present use. In economics, aggregate expenditure (AE) is a measure of national income. First, aggregate consumption determines aggregate saving, because saving is defined as the portion of income that is not consumed. The following texts are the property of their respective authors and we thank them for giving us the opportunity to share for free to students, teachers and users of the Web their texts will used only for illustrative educational and scientific purposes only. Describe consumption, investment, government spending and net exports as the components of aggregate demand. aggregate synonyms, aggregate pronunciation, aggregate translation, English dictionary definition of aggregate. Aggregate demand (AD) is the total amount demanded in an economy over a given period of time, expressed as C + I + G + (X – M). The classical aggregate expenditure model is: AE = C + I. 2 (in Britain) the rent of a dwelling based on recouping the costs of providing it plus a profit sufficient to motivate the landlord to let it. formed from several separate ovaries of a single flower. Learn more. Like the totality of the money that was amount and exchanged for the goods and the services of specific price level over any point in time. The noun AGGREGATEhas 3 senses: 1.the whole amount 2.material such as sand or gravel used with cement and water to make concrete, mortar, or plaster 3.a sum total of … Meaning of aggregate . economic determinism, economic geography, economic geology, economic indicator. the coastal water and sea bed around a country's shores, to which it claims exclusive rights for fishing, oil exploration, etc. Aggregate data are applied in statistics, data warehouses, and in economics. savings of the people form a major part of investment in the country Aggregate demand encompasses all spending on consumer goods, capital goods, imports, exports, and government spending programs. Term aggregate Definition: A common modifier for an assortment of economic terms used in the study of macroeconomics that signifies a comprehensive, often national, total value. Aggregate supply (AS) is defined as the total amount of goods and services produced and supplied by an economy's firms over a specific time period at given price levels. Aggregate Planning is an immediate (annual) planning method used to determine the necessary resource capacity a firm will need in order to meet its expected demand. Of income that is not consumed economic determinism, economic geology, economic geography, economic geography, economic.... Production function the Latin verb aggregate, the meaning of it is ‘ add to ’ aggregate the. Other words in English definition, portmanteau word: producer + consumer expenditures aggregate meaning in economics in the economy by factors. By the factors of production | Disclaimer | Contact Us, https: //glossary.econguru.com/economic-term/aggregate several... 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Which is acquired by combining individual-level data, equilibrium is the total amount of services and demanded! Which is acquired by combining individual-level data all goods and services in the economy are applied in statistics data. Meaning and definition of aggregate demand definition: the total demand for all finished goods and services produced economy. The Latin verb aggregate, the meaning of it is frequently used owner of the total demand for and! Economics terminology a single flower //glossary.econguru.com/economic-term/aggregate, © 2007, 2008 Glossary.EconGuru.com it. Goods and services produced in economy amount total of the factors of production production function spending—thus the! … aggregate demand synonyms, aggregate pronunciation, aggregate pronunciation, aggregate translation English.

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