What is the primary focus of Aggregate Demand in an economy?

Aggregate Demand focuses on the total amount of goods and services that people, businesses, and the government want to buy in an economy at different price levels. It includes consumption by households, investment by businesses, government spending, and net exports, which is the difference between what a country sells to others and what it buys from them. The primary idea is that when overall demand increases, it can lead to economic growth, while a decrease can lead to a slowdown. For example, if many people start buying new cars, this boosts demand, encouraging car manufacturers to produce more and hire additional workers. Understanding Aggregate Demand helps economists and policymakers make decisions to keep the economy stable and growing.