Aggregate behavior
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In economics, aggregate behavior refers to economy-wide sums of individual behavior. It involves relationships between economic aggregates such as national income, government expenditure, and aggregate demand. For example, the consumption function is a relationship between aggregate demand for consumption and aggregate disposable income. Models of aggregate behavior may be derived from direct observation of the economy, or from models of individual behavior. Theories of aggregate behavior are central to macroeconomics.
In economics, aggregate behavior refers to economy-wide sums of individual behavior. It involves relationships between economic aggregates such as national income, government expenditure, and aggregate demand. For example, the consumption function is a relationship between aggregate demand for consumption and aggregate disposable income. Models of aggregate behavior may be derived from direct observation of the economy, or from models of individual behavior. Theories of aggregate behavior are central to macroeconomics. AD = C + I + G + (X-M) Aggregate demand is the sum of all individual demands in the market. Having said that, aggregate behavior may or may not result in changes of the aggregate demand due to the different thoughts of economics.
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