What is the difference between aggregate demand management and aggregate supply management?

What is the difference between aggregate demand management and aggregate supply management Introduction: The Macro Perspective Hello everyone, and welcome to today's video. When it comes to managing the overall economy, two key concepts take center stage: aggregate demand and aggregate supply. While they both play crucial roles, they differ in their focus and implications. In this video, we'll delve into the nuances of aggregate demand management and aggregate supply management, highlighting their distinctions and significance. So, let's get started! Aggregate Demand Management: Driving Economic Activity Aggregate demand refers to the total demand for goods and services in an economy at a given time. It represents the sum of individual consumption, investment, government spending, and net exports. Managing aggregate demand involves policies and measures aimed at influencing this total demand. The objective is to stimulate economic activity, particularly during periods of recession or low growth. Tools such as fiscal policy, involving government spending and taxation, and monetary policy, through interest rates and money supply, are commonly employed for aggregate demand management. By adjusting these variables, policymakers can impact consumer spending, business investment, and overall economic output. Aggregate Supply Management: Enhancing Productivity and Efficiency