Economics Aggregate Demand And Supply Questions
The concept of aggregate demand management refers to the use of various fiscal and monetary policies by the government and central bank to influence the overall level of demand in an economy. It involves managing the total spending by households, businesses, and the government to achieve macroeconomic objectives such as price stability, full employment, and economic growth. Aggregate demand management aims to stabilize the economy by adjusting government spending, taxation, and interest rates to stimulate or restrain aggregate demand, thereby influencing the level of output and employment in the economy.