Question

_____________ refers to the minimum amount of sales proceeds which entrepreneurs expect to receive from the sale of output at any given point level of employment.

• A. Aggregate revenue
• B. Aggregate supply
• C. Aggregate income
• D. None of the above

Answer 1

Answer: (B)

Aggregate supply

Aggregate supply refers to the sales proceeds from the desired level of output in the economy during an accounting year. It is through this output only that the producer sector generates income in the economy at any given level of employment. Therefore, aggregate supply= consumption + savings.