Aggregate demand is a term from macro economics. It is the total demand for final goods and services in the economy at a given time and price level. This is also means a total demand for goods and services in a economy during a specific period. In other words, the amount of goods and services in the economy that will be purchased at all possible price levels. This is the demand for the gross domestic product of a country when inventory levels are static. It is often called effective demand or abbreviated as ‘AD’.