Effective Demand means how much a good as well as service that people are actually buying for the current market price. It is the aggregate actual demand within the economy supported because of the consumers’ capacity to spend, as opposed on the notional demand. Effective demand excludes the actual latent demand. In economics, effective demand within a market is the actual demand for a products or services which occurs while purchasers are constrained within a different market.
Effective Demand
