ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -What is aggregate supply? Within economics, aggregate supply is the total amount of goods or services available in a particular market for a specific period. Also known as total output, it is the total amount of items producers can sell at a given price in an economy.

Detailed explanation-2: -GDP = Gross domestic product = the money value of all final goods and services. produced and sold within a country in a given period of time (usually one year). It is a measure of total output (= total income = total expenditures).

Detailed explanation-3: -Aggregate supply, or AS, refers to the total quantity of output-in other words, real GDP-firms will produce and sell. The aggregate supply curve shows the total quantity of output-real GDP-that firms will produce and sell at each price level.

Detailed explanation-4: -In macroeconomics, aggregate demand (AD) or domestic final demand (DFD) is the total demand for final goods and services in an economy at a given time. It is often called effective demand, though at other times this term is distinguished.

Detailed explanation-5: -Aggregate supply, also known as total output, is the total supply of goods and services produced within an economy at a given overall price in a given period.