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Aggregate demand (Comparing with microeconomic demand ("Price"…

- - - - The goods such as cars, computers, mobile phones, and bicycles that are used by consumers over a period of time (usually more than one year)
    - - The goods such as rice, toilet paper, and newspapers that are used up immediately or over a relatively short period of time
- - - - Occurs when firms spend on capital in order to maintain the productivity of their existing capital
    - - Occurs when firms spend on capital to increase their output to respond to higher demand in the economy
- - - - Exports are domestic goods and services that are bought by foreigners.
      - Imports are goods and services that are bought from foreign producers
- - - - When house prices increase across the economy, consumers feel more wealthy and are likely to feel confident enough to increase their consumption by saving less or borrowing more.
    - - Many consumers hold shares in companies. If the value of those shares increases then people feel more wealthy.This might encourage them to spend more. Alternatively, they might sell those shares and then use the earnings to increase consumption.