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Question

_____________ may be defined as the total amount of goods which all the buyers of final output in the economy desire to purchase.

A
Final demand
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B
Aggregate demand
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C
Market demand
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D
Individual demand
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Solution

The correct option is B Aggregate demand
Aggregate demand refers to the demand of the final output of the economy which all the buyers in the economy desire to purchase at a certain level of employment. This desire to purchase is backed by sufficient purchasing power given the general price level in the economy.

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