Analysis of information sources in references of the Wikipedia article "Aggregate demand" in English language version.
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This is the sum of the demand for all final goods and services in the economy. It can also be seen as the quantity of real GDP demanded at different price levels.
The importance of the above results is clear: strong restrictions are needed in order to justify the hypothesis that a market demand function has the characteristics of a consumer demand function. Only in special cases can an economy be expected to act as an 'idealized consumer.' The utility hypothesis tells us nothing about market demand unless it is augmented by additional requirements.
...we establish that when the number of agents is at least equal to the number of goods, then any smooth enough function satisfying Walras's Law can be locally seen as the aggregate market demand of some economy, even when the distribution of income is imposed a priori.
Keynes argues that the importance of the function of the aggregate demand had been underscored by Malthus, but denied by Ricardo, who won the game and "conquered England as completely as the Holy Inquisition conquered Spain", so that "[i]t could only live on furtively (...) in the underworlds of Karl Marx, Silvio Gesell or Major Douglas"
...we establish that when the number of agents is at least equal to the number of goods, then any smooth enough function satisfying Walras's Law can be locally seen as the aggregate market demand of some economy, even when the distribution of income is imposed a priori.
Keynes argues that the importance of the function of the aggregate demand had been underscored by Malthus, but denied by Ricardo, who won the game and "conquered England as completely as the Holy Inquisition conquered Spain", so that "[i]t could only live on furtively (...) in the underworlds of Karl Marx, Silvio Gesell or Major Douglas"
The importance of the above results is clear: strong restrictions are needed in order to justify the hypothesis that a market demand function has the characteristics of a consumer demand function. Only in special cases can an economy be expected to act as an 'idealized consumer.' The utility hypothesis tells us nothing about market demand unless it is augmented by additional requirements.
