Mention the two components of aggregate supply.

Open in App

Solution

Aggregate supply refers to the desired level of output in the economy during an accounting year. It is through this output only that the producer sector generates income. Therefore, aggregate supply is equal to the national income of the economy.
Aggregate Supply= consumption + savings.

Suggest Corrections

Similar questions

Explain the concept of aggregate supply.

Explain any three components of AD.

Join BYJU'S Learning Program