what is an ideal aggregate supply and demand
Economics and finance|Macroeconomics|Aggregate demand and aggregate supply|Aggregate demand and aggregate supply. The concepts of supply and demand can be applied to the economy as a whole. Aggregate supply is the total quantity of output firms will produce and sellâin other words, the real GDP. The upward-sloping aggregate supply curveâalso known as the short run aggregate supply curveâshows the positive relationship between price level and real GDP in the short run.
Aggregate demand. Economists use a variety of models to explain how national income is determined, including the aggregate demand - aggregate supply (AD - AS) model. This model is derived from the basic circular flow concept, which is used to explain how income flows between households and firms.