noun

• The level of demand that represents a real intention to purchase by people with the means to pay.

  ‘The key point is that the effect of a lower price level on real aggregate effective demand is not the same as the effect of a falling price level or expectations of a falling price level.’

  More example sentences

  • ‘Conceivably effective demand and real income could be increased just as readily as a consequence of the lower prices from the removal of all levies on imported goods.’
  • ‘This opens the way for state intervention to regulate the level of effective demand to secure full employment.’
  • ‘When the normal limit to the field of employment has been exceeded, the desire to save forms capital faster than the population and its effective demand increases.’
  • ‘For many governments it is a primary duty to control the level of total effective demand for goods and services.’