What does the aggregate demand curve represent in an economy?

The aggregate demand curve represents the total amount of goods and services that all consumers, businesses, and the government in an economy are willing to buy at different price levels. It slopes downward, meaning that when prices are lower, people are more likely to buy more products because they can afford more. For example, if the price of a popular smartphone drops, more people may decide to purchase it, increasing the overall demand in the economy. This curve helps economists understand how changes in prices can affect overall spending and economic activity. By analyzing shifts in the aggregate demand curve, we can see how factors like consumer confidence or government policies influence the economy.