10th Oct 2011EFM Faculty P.Uday Shankar
An economic aggregate is simply anabstraction that people use to describe somesalient feature of economic life.
The process by which real objects such aslaptops, cinema tickets, steel, cars , etc arecombined into an abstraction called totaldomestic product is an aggregation.
The same demand and supply curves wedrew for the firms can be applicable here too.In this case the demand curve becomesAggregate Demand and the supply curvebecomes Aggregate Supply curve.
Gross Domestic Product (GDP) is the sum of the money values of all final goods andservices produced in the domestic economy