--- In economics@y..., "wojtek210" <wojtek@i...> wrote:
> Hi,
>
> I have got the test in macroeconomics. There is a question about
> components of aggregate supply. What would you choose:
>
> a)GDP,
> b)net taxes (NT),
> c)marginal propensity to consume (MPC),
> d)Investments (I),
> e)Consumption(C)=autonomous consumption(Ca)+MPC*national income(Y),
> f)Import (Z),
> g)Export (X),
> h)Government Expendituries (G),
> i)Savings (S)
>
> Thanks for help to choose good items.
>
> greetings,
>
I would choose GDP.

GDP by definition is an aggragate number.
GDP is by definition the P*Q for all products in the economy.
The GDP is the price where this intersects.

This "must" occur at the equilibrium point. Or the intersectoin of
S&D curves.

This does ignore concepts of excess supply and demand, but in the
long term, excesses disappear.

I might also include savings as the supply of money available for
loans. But usually you don't see this in a chart and the answer is
harder to defend. But in the truest sense, savings = supply. But
since there are many other sources of loans, I feel I could argue
that it's not the AGGRAGATE supply.

Net taxes would be the supply of money to the government and also
could be considered aggragate. we as the taxpayers consume it and the
government demands it. So I'd include that.



> Wojtek