Chapter 5 Second Original Post

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School

Columbia Southern University *

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Course

ECO 2302

Subject

Economics

Date

Jan 9, 2024

Type

docx

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Uploaded by UltraNarwhal2971

As of October 5, 2023, there are no other original posts for me to make a comment. I am writing my second original post. This post will cover the differences between Aggregate Supply and Aggregate Demand. Understand the concepts of Aggregate Supply and Aggregate Demand can help individuals explain how political and social issues can affect the prices (Indeed.com, 2022). Aggregate supply is a value of good and services available. Another way to explain this concept is that aggregate supply is the relation between the price levels and the quantity of output that companies are willing to provide. Aggregate demand is the total demand for goods and services in an economy. Another way to explain this concept is that aggregate demand is the total amount of money exchanged for goods or services. The equilibrium price is found at the point where the aggregate demand curve meets the aggregate supply curve. At equilibrium point, prices remain constant and reflect the economy’s inflation rates. It’s important to understand that when supply is higher than demand, the economy produces too many goods, more than what the need is. That can lead to a drop in prices. And when demand is higher than supply, prices will go up. The customers are willing to pay more for the in-demand goods. References Indeed.com (2022). Aggregate Supply vs. Aggregate Demand: What's the Difference? Aggregate Supply vs. Aggregate Demand: What's the Difference? | Indeed.com

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Chapter 5 Second Original Post

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