Difference between agragate demand and agragate supply
Answers
Explanation:
Aggregate Supply (AS) is value of total output that all the firms are willing to supply during the given time period. AD indicates the total demand in the economy, while AS shows the total supply in the economy (both are planned, not actual). AD includes all the sectors whereas AS just deals with the Firm sector.
Answer:Aggregate supply is the cumulative amount of goods and services firms in an industry are willing to sell at a given price. Aggregate demand is the maximum quantity of goods and services to be purchased at the possible price level.
AD shows total economic demand, whereas AS shows total economic supply
AD covers all the sectors whereas AS only covers the company/business sector.
AS is also known as the National Product / National Income / GDP, as the factors of production are produced by businesses as they produce the output and the output value generated = revenue generated, so AS = GDP or Y.
Explanation: