What does "aggregate demand" refer to?

Aggregate demand refers to the total demand for all goods and services within an economy at a given price level over a specified period. It encompasses consumption by households, investments by businesses, government spending, and net exports (exports minus imports). This holistic view captures the overall economic activity and reflects the collective purchasing power of all sectors in the economy.

The other options focus on specific aspects of demand rather than the comprehensive overview that aggregate demand provides. For instance, while one option mentions demand across different industries, it does not account for the price level or the aggregate nature of this demand. Another option narrows down the concept to luxury goods, which is too specific and fails to encompass the broader economic picture. Lastly, limiting the demand to that by the government excludes the significant contributions from households and businesses, which are crucial components of aggregate demand. Therefore, the choice that highlights total demand at a given price level accurately captures the essence of the aggregate demand concept.