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===Aggregate Demand-Aggregate Supply model===
 
{{main|AD-AS 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.
 
[[Fitxer:320as&ad.jpg|right|]]Thus, that we could refer to an "aggregate quantity demanded" ('''Y<sup>d</sup>''' = '''C''' + '''I<sub>p</sub>''' + '''G''' + '''NX''' in real or inflation-corrected terms) at any given aggregate average price level (such as the [[GDP deflator]]), '''P'''.
 
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]]."