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===Aggregate Demand-Aggregate Supply model===
Sometimes, especially in textbooks, "aggregate demand" refers to an entire demand curve that ''looks'' like that in a typical [[Marshallian demand|Marshallian]] [[supply and demand]] diagram.
In these diagrams, typically the '''Y<sup>d</sup>''' rises as the average price level ('''P''') falls, as with the '''AD''' line in the diagram. The main theoretical reason for this is that if the nominal [[money]] supply ('''M<sup>s</s>''') is constant, a falling '''P''' implies that the [[Real vs. nominal in economics|real]] money supply ('''M<sup>s</s>'''/'''P''')rises, encouraging lower [[interest rate]]s and higher spending. This is often called the "[[Keynes effect]]."
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