Respuesta :
The fact that wages are sticky-ward means the government has a stronger incentive to intervene in the economy in aggregate demand.
What is aggregate demand?
- The overall demand for final goods and services in an economy at a certain period is known as aggregate demand (AD) or domestic final demand (DFD) in the field of macroeconomics.
- Effective demand is a common name for it, however, other times this term is used to make a distinction.
- This is a country's demand for its gross domestic output. It details the volume of goods and services that will be bought at every price point.
- The aggregate demand is made up of investment, business and government expenditures, consumer spending, and net exports.
- Real output is represented on the horizontal axis and the price level is plotted on the vertical axis to represent the aggregate demand curve.
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