ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -GDP (gross domestic product) measures the size of an economy based on the monetary value of all finished goods and services made within a country during a specified period. As such, GDP is the aggregate supply.

Detailed explanation-2: -Aggregate Supply is the total quantity of all goods and services produced in an economy at all possible price levels at a given time. Aggregate Demand is the total quantity of all goods and services consumed in an economy at all possible price levels at a given time.

Detailed explanation-3: -Aggregate supply is the total amount of goods (including services) supplied by businesses within a country at a given price level. The higher the price level, the greater the incentive of businesses to produce more of their goods for the market.

Detailed explanation-4: -If the aggregate supply-also referred to as the short-run aggregate supply or SRAS-curve shifts to the right, then a greater quantity of real GDP is produced at every price level. If the aggregate supply curve shifts to the left, then a lower quantity of real GDP is produced at every price level.

Detailed explanation-5: -Gross Domestic Product (GDP) Gross domestic product is the total value of all of the completed goods and services produced by an economy during a period of one year.