Aggregate demand is the total amount of goods and services that consumers, businesses, and the government are willing to purchase at a given price level in an economy. It includes consumption by households, investment by businesses, government spending, and net exports (exports minus imports). Aggregate demand is an important concept in macroeconomics as it helps to understand overall economic activity and growth. Changes in aggregate demand can influence economic performance. For example, an increase in consumer spending can lead to higher production levels, potentially resulting in job creation and economic expansion. Conversely, a decrease in aggregate demand can lead to economic contraction, higher unemployment, and lower overall output.