What term refers to the total demand for goods and services across the economy?

The term that refers to the total demand for goods and services across the economy is aggregate demand. Aggregate demand encompasses the overall demand from households, businesses, government, and foreign buyers for all finished goods and services produced within a country at a given price level. It plays a crucial role in understanding economic health, as it reflects consumer and business spending and investment patterns that drive economic growth.

Other concepts listed, such as consumer sovereignty, focus on the power of consumers to dictate what goods and services are produced based on their preferences. Equilibrium generally refers to a state where supply equals demand in the market, but it does not provide a measure of total demand itself. The circular flow of income describes the flow of resources, goods, services, and money between households and businesses, yet it does not specifically define aggregate demand. Thus, aggregate demand is the most accurate term for the total demand for goods and services across the economy.