CLO# 6AA Aggregate supply and aggregate demand represent the total supply and demand for all goods and services in an economy. Consumer demand for goods and services affects how companies satisfy that demand with products. This allows companies to determine which product will be most profitable to produce. The aggregate supply curve represents the amount of real GDP supplied by the economy at different price levels. The reasoning used to construct the aggregate supply curve differs from the reasoning used to construct supply curves for individual goods and services. The supply curve for an individual good is drawn assuming that the prices of the factors of production remain constant. As the price of good X increases, the unit costs incurred by sellers to supply good The aggregate supply curve, however, is defined in terms of the price level. Raising the price level will increase the price producers can get for their products and thus induce more production. But an I...