ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Aggregate demand is a macroeconomic term and can be compared with the gross domestic product (GDP). GDP represents the total amount of goods and services produced in an economy while aggregate demand is the demand or desire for those goods. Aggregate demand and GDP commonly increase or decrease together.

Detailed explanation-2: -Gross domestic product (GDP) is the total monetary or market value of all the finished goods and services produced within a country’s borders in a specific time period. As a broad measure of overall domestic production, it functions as a comprehensive scorecard of a given country’s economic health.

Detailed explanation-3: -Supply is a fundamental economic concept that describes the total amount of a specific good or service that is available to consumers.

Detailed explanation-4: -Aggregate supply is the total quantity of output firms will produce and sell-in other words, the real GDP. Aggregate demand is the amount of total spending on domestic goods and services in an economy.

Detailed explanation-5: -Macroeconomics is defined as the economic behavior of the whole system of the country. This is also known as aggregative economics.