Aggregate demand and aggregate supply in national economy

        The total supply of services and goods that in national economy the firm going to plan on selling during a specific time period is known as aggregate supply. It is consider the amount of services and goods that happen with the willingness of firms at specific price level in an economy going to sell.follwoing are the factors that affect the aggregate supply like increase capacity, changes in expectation for inflation, resource price change and supply stock.  In an economy the total demand of goods and services at given time and price level are known as aggregate demand. it is considering the demand of gross domestic product. Aggregate demand includes the following components like net export, government spending, investment and consumption. The formula of aggregate demand =C+I+G+(X-M) it also represent the relationship between price level and real GNP.

        The pair of price quantity also known as equilibrium where the quantity supplied equals to quantity demand. in the model of aggregate supply-aggregate demand show that the curves of demand and supply are intersect with each other.  The aggregate increase in the demand become the cause of increase in price in long run and when the aggregate demand going to increase its curve shift to right side.  The aggregate supply curve affected by the technology, labor and capital. The aggregate supply also consider the increase in aggregate demand bring increase in prices and output of services and goods.