"Effective demand" represents which of the following?

Question

Quizplus · Accepted Answer

Effective demand refers to the total demand for goods and services in an economy, which is represented by aggregate demand. It takes into account the purchasing power of the consumers and their willingness to buy goods and services, thereby indicating the state of the economy. Money demand refers to the demand for money as a medium of exchange, while demand for exports represents the demand for goods and services by foreign markets. Domestic demand refers to the total demand within a country, which is a part of effective demand. The demand for labor is specific to the labor market and does not represent the overall demand for goods and services in the economy.

"Effective Demand" Represents Which of the Following