What term refers to the total demand for a country's output, encompassing consumption, investment, government purchases, and net exports?

The term that refers to the total demand for a country's output, which includes consumption, investment, government purchases, and net exports, is aggregate demand. This concept captures the overall demand within an economy by summing these four components, effectively representing the total spending on the nation's goods and services.

Aggregate demand plays a crucial role in macroeconomic analysis as it helps in understanding economic fluctuations. When aggregate demand rises, it indicates that consumers, businesses, government, and foreign buyers are all collectively demanding more goods and services, which can lead to economic growth and potentially inflation. Conversely, a decline in aggregate demand can signal weakening economic performance, potentially resulting in unemployment and decreased production.

Other options mentioned, such as aggregate supply, focus on the total output that the economy can produce at a given overall price level, while market demand pertains to the demand within specific markets for particular goods and services. Sector demand usually refers to the demand specific to a certain sector of the economy, rather than the economy as a whole. Therefore, aggregate demand is the most accurate term for the comprehensive demand for a country's output.