1)What is aggregate supply? 2)Identify the differences between macroeconomics and microeconomics

1)Aggregate supply, in simpler words, is defined as the sum total supply of goods and services that a supplier is willing to sell or able to sell in the market at a certain price level. The aggregate supply is upward sloping due to the positive relationship between the price level of the goods and the supply. In other words, the supply of goods rises when the price level of good rises and falls with the fall in the price level of goods and services.

2)Macroeconomics studies the overall economy and looks how government and countries in general can make decisions that affect the overall economy. Microeconomics on the other hand looks at specific markets such as the market for cars and how individuals and firms interact and make decisions. In microeconomics we make less assumptions and the models tend to line up with reality more than in macroeconomics because it is hard to model an overall market economy.