Aggregate Demand : Economic Growth :: Aggregate Supply : ?

Aggregate demand refers to the total amount of goods and services that people want to buy in an economy, and it is closely linked to economic growth because when people spend more, businesses produce more, leading to a growing economy. Similarly, aggregate supply represents the total amount of goods and services that producers are willing to sell at a given price level. The relationship we can see here is that just as aggregate demand is essential for economic growth, aggregate supply is crucial for determining the overall production capacity of an economy. If aggregate supply increases, it can lead to more economic growth by providing more jobs and increasing the availability of goods. For example, if a new technology allows factories to produce cars more efficiently, the aggregate supply of cars increases, which can help the economy grow by creating jobs and lowering prices.