Aggregate demand is the total demand for goods and services in an economy at a given price level. It is the sum of consumption, investment, government spending, and net exports. Boosting aggregate demand is a key goal of macroeconomic policy because it can lead to higher economic growth, lower unemployment, and higher inflation.
There are a number of ways to boost aggregate demand. One way is to increase government spending. This can be done by increasing government purchases of goods and services, or by providing tax breaks to businesses and consumers. Another way to boost aggregate demand is to lower interest rates. This makes it cheaper for businesses to borrow money and invest, and for consumers to borrow money to buy goods and services. Finally, increasing the money supply can also boost aggregate demand. This can be done by printing more money or by buying government bonds.
