Definition of effective demand in English:

effective demand

Syllabification: ef·fec·tive de·mand


  • The level of demand that represents a real intention to purchase by people with the means to pay.
    More example sentences
    • The key point is that the effect of a lower price level on real aggregate effective demand is not the same as the effect of a falling price level or expectations of a falling price level.
    • Conceivably effective demand and real income could be increased just as readily as a consequence of the lower prices from the removal of all levies on imported goods.
    • This opens the way for state intervention to regulate the level of effective demand to secure full employment.

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Word of the day maelstrom
Pronunciation: ˈmeɪlstrəm
a powerful whirlpool in the sea

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