What are the two aggregates used in the analysis of both microeconomics and macroeconomics?

Economics Dec 12, 2020

Expert Solution

The two aggregate measures which are the most prominent ones in the analysis of both microeconomics and macroeconomics are aggregate demand and aggregate supply. The price where the aggregate demand equals the aggregate supply is called as the equilibrium price point.

The equilibrium price point is usually self-adjusting in nature or it may even be modified by using various techniques available under the monetary policy and the fiscal policy.

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