Aggregate Supply

Discipline: Economics

Aggregate supply is the total value of real economic output in average selling price terms. Aggregate supply value equals to the real gross domestic product, or real GDP.

Before John Maynard Keynes (1883-1946), economists believed that aggregate supply determined the national income. Keynes, however, emphasized on aggregate demand.

Also see: aggregate demand, aggregate demand theory, aggregate output, real gross domestic product, supply

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