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Aggregate Demand Calculator

Calculate aggregate demand components and economic equilibrium

AD = C + I + G + (X - M)

Price Level Effects

Economic Factors

Aggregate Demand Analysis

Total Aggregate Demand: $0.0 trillion
Net Exports: $0.0 trillion
Price-Adjusted AD: $0.0 trillion
Consumption Share: 0%
Investment Share: 0%
Economic Condition: Balanced

Understanding Aggregate Demand

Aggregate Demand (AD): Total spending in an economy at different price levels. Formula: AD = C + I + G + (X - M)

Wealth Effect: When price levels fall, real wealth increases, leading to higher consumption.

Interest Rate Effect: Lower price levels reduce interest rates, stimulating investment and consumption.

Exchange Rate Effect: Lower domestic prices make exports more competitive, increasing net exports.

AD Slope: Downward sloping due to wealth, interest rate, and exchange rate effects.