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How do changes in aggregate supply and demand affect the other economic indicators?

User Binil
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Answer:

An economic activity is the elements of the economy that tell us how the economy is working. Therefore when the aggregate demand and supply of a certain good is changed, it shows in which direction the economy is working in.

For example is the prices of tomatoes in an economy is inflated, and the demand is till high but the due to the high prices, the demand is decreased. This means that the company is going towards inflation.

User YDL
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