Question

Aggregate supply and aggregate demand and how does it affect economy

Answer 1

aggregate demand means sum total.of de mad occouring in. the economy .. during. a particular period of time and aggregate supply means sum.total of total supply within the country during specific time . when ad will no equal to as then problem of inflation.or deflation.May rise

Answer 2

Answer:

AGGREGATE DEMAND AFFECTS ECONOMY IS:

                                                                                 Aggregate demand is helpful in determining the overall strength of consumers and businesses in an economy. Since aggregate demand is measured by market values, it only represents total output at a given price level and does not necessarily represent quality or standard of living

AGGREGATE SUPPLY AFFECTS ECONOMY IS:

                                                                              An increase in aggregate supply due to a decrease in input prices is represented by a shift to the right of the short-run aggregate supply curve . A second factor that causes the aggregate supply curve to shift is economic growth. Positive economic growth results from an increase in productive resources, such as labor and capital.