Maharashtra State BoardHSC Commerce 12th Board Exam
Advertisement Remove all ads

What is Aggregate Supply? - Economics

Advertisement Remove all ads
Advertisement Remove all ads
Advertisement Remove all ads

What is aggregate supply? 

Advertisement Remove all ads

Solution

Meaning:-

It is the total output of goods and services produced and supplied in the economy during a given period of time. It is an important element of macroeconomic analysis. Aggregate supply depends on the availability and use of factors of production like natural resources (N), Labour (L), Capital (K), and the state of technology (T).

Defition:-

According to J.M Keynes “Aggregate supply refers to the total quantity of goods and services which can be produced with available factors of production, i.e., land, labour, capital, and organisation”.

Thus aggregate supply = f (N, L, K, T)

N = Natural resources             (which is considered to be constant)

L = Stock of Capital  (which is considered variable)

K = Supply of labour              (which is considered to be constant)

T = State of Technology         (which is considered to be constant)

Concept: Concept of Aggregate Demand and Aggregate Supply
  Is there an error in this question or solution?
Advertisement Remove all ads
Share
Notifications

View all notifications


      Forgot password?
View in app×