Distinguish between:
1) Aggregate Demand and Aggregate Supply
Aggregate Demand
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Aggregate Supply
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Aggregate demand implies the total demand for final goods and services by all the people in an economy.
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Aggregate supply refers to the aggregate production planned by all the producers during an accounting year.
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The important components of aggregate demand are consumption expenditure, investment, government expenditure, net exports etc.
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Consumption and savings are the two main components of aggregate supply.
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It is measured with the help of aggregate demand price (minimum sales proceeds that are expected)
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It is measured with the help of aggregate supply price.
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