Aggregate Demand is like a shopping list for an entire country! It's the total planned spending on all the domestic products and services at different price levels over time. Imagine if everyone in your country got together and wrote down what they plan to buy this month - that's Aggregate Demand

AD includes everything from the latest video games to huge construction projects. Here's the recipe:

• Consumption (C): This is what households spend on things like food, clothes, and vacations. Basically, all the stuff you bug your parents to buy!
• Investment (I): Businesses spend money too, like building new factories or buying new machines. That's investment.
• Government Expenditures (G): Roads, schools, defense - yep, the government buys stuff too!
• Exports (X): Selling products to other countries. If you ever see a "Made in [Your Country]" label abroad, that's an export!
• Minus Imports (M): We need to subtract money spent on foreign goods, like when you buy that cool gadget from another country.

Don't confuse AD with GDP! Think of GDP as the score at the end of a basketball game; it's the actual output. AD, on the other hand, is like the game plan - the planned spending at different prices.