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What Is Written Here Is Not Investment Advice. It has been published on this page to explain the terminology used with explanations about the stock market, digital currencies, economy, finance and investment instruments.

🔍Total demand

 Aggregate demand is the sum of individual demands for final goods and services in an economy over a given time period. In this article, I will explain how aggregate demand is calculated, what factors affect it, and why it is important for economic growth and stability.

The aggregate demand formula is:

Total Demand = Consumption + Investment + Public Expenditures + Net Exports

Let's examine each component in this formula in detail.

Consumption is the purchase of goods and services by households. Consumer spending is the largest component of the economy and is often dependent on factors such as income, wealth, interest rates, taxes, expectations and inflation.

Investment is when firms buy capital goods (machines, buildings, vehicles, etc.) or increase their stocks. Investment spending is the most volatile component of the economy and often depends on factors such as profitability, interest rates, taxes, expectations and technology.

Public expenditure is the government's purchase of goods and services or public investments. Public spending is the most stable component of the economy and is often dependent on factors such as political decisions, budget balance, public debt and public policies.

Net exports are the difference between a country's exports and imports. If net exports are positive, the country has a foreign trade surplus. If net exports are negative, it means that the country runs a foreign trade deficit. Net exports are the smallest component of the economy and often depend on factors such as exchange rate, income level, price level, trade policies and global demand.

The aggregate demand curve, on the other hand, is the curve that shows the sum of the planned expenditures at each price level. The aggregate demand curve is negatively sloped. That is, as the general level of prices increases, aggregate demand decreases; As the general level of prices decreases, aggregate demand increases. The reasons for this situation can be explained as Keynes effect (interest rate effect), Pigou effect (wealth-real advance effect) and open economy effect.

The position of the aggregate demand curve is determined by other factors affecting aggregate demand. These factors include monetary policy (money supply), fiscal policy (tax and public spending), expectations (consumer confidence), foreign demand (exports), and demand shocks (unexpected events).

Toplam talebin önemi, ekonomik büyüme ve istikrar ile ilgilidir. Toplam talep arttığında ekonomik büyüme hızlanır; toplam talep azaldığında ekonomik büyüme yavaşlar


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