SÁNCHEZ CRUZ JESÚS ANTONIO 6E

AGGREGATE SUPPLY AND DEMAND

AGGREGATE OFFER AGGREGATE DEMAND

Describes the relationship
The aggregate offer is the total
between the quantity of product
amount of a good or service that,
added demanded and the
as a whole, would be willing to sell
inflation rate, as all other
companies in a sector.
variables remainconstant.

PRICE
LEVEL

When prices go up, It is the sum of what the It depends on the Total demand for The total expense Spending by all levels of Net foreign
profits will tend to rise. production factors and the projections that are made goods and services planned by government on goods spending on
The opposite will also technology used to on an economy. to the consumer. companies in new and services. domestic
happen when prices fall. combine them have cost. machinery, goods and
When the economic (C) (G)
This variable is the one Thus, as the price of inputs factories and services, which
situation is favorable in a
that most affects the or the means to transform other capital is equal to
country, different firms
behavior of the them increases, business goods plus the exports minus
increase their investment.
aggregated offer and, benefits tend to decline. In planned spending imports.
In an economic crisis or
because of this, studying that scenario, the on newhomes.
political and social conflicts, (NX)
what the right rate aggregate bid is reduced.
the trust of organizations is (I)
becomes an essential Similarly, when production
reduced and with it falls the
task in companies. costs decrease, the effect is
aggregate supply.
just the opposite.
𝑌𝑎𝑑 = 𝐶 + 𝐼 + 𝐺 + 𝑁