Aggregate supply and demand is the total supply and total demand in an economy at a particular period of time and particular price threshold.

Demand is an economic principle that describes consumer willingness to pay a price for a good or service.

The aggregate supply curve is a concept in macroeconomics that, with the addition of the aggregate demand curve, shows the equilibrium level of prices and quantity in an economy.

The supply and demand curves are graphic representations of these basic principles. When deriving these curves, economists plot prices on the vertical X-axis and quantity on the horizontal Y-axis.

Simulations using a Phillips curve-type relationship provide insights into the importance of demand versus supply for inflation over different periods. The decade of low inflation after the Great ...