AP Macro Questions Pls Help

Question

In a paragraph explain what aggregate demand and aggregate supply are and give an example illustrating how each work. 

In a second paragraph, explain how aggregate demand and supply are different from supply and demand and give an example to illustrate each difference. 

In a third paragraph, explain how to graph aggregate supply and aggregate demand and draw a graph for each based on your examples in paragraph 1. 



Finally, include an explanation of what needs to be in an aggregate supply or demand graphs and the process you go through to draw them.

Answer 1

AD is the total expenditure on goods and services exchanged in the economy.

AD curve represents the total quantity of demand at different prices at a particular time.

AS is the total volume of goods or services producers are willing to sell in the economy.

AS curve represents total output producers sell at a particular price. AS deals with real GDP.

AD deals with final goods.

AS and AD are macroeconomic terms that represent the whole economy,

To derive both curves, you need data on price, quantity supplied and demanded at a particular time.

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