Total supply refers to the total amount of products and services for final use that a country or region can actually provide to the market by social production activities within a certain period (usually one year).Total supply andTotal social demandIt is a pair of basic concepts in macroeconomics.Western MacroeconomicsImportant concepts of.Generally, the total output provided by the whole society in a certain period is the variousproduction factorsThe sum of（wages, interest, rent and profit).[1]
Chinese name
Aggregate supply
Foreign name
Aggregate supply
Classification
Products and services provided by domestic production activities
First, products and services provided by domestic production activities, including agriculture, forestry, animal husbandry, fisheryIndustry、construction businessAnd other industries, including transportation, post and telecommunicationsBancassurance, commerce, service industry and other industries, namelygross domestic product。
Second, products andlabour services, that is, import of goods and services[2]。
The non distributable part of the current period refers to the part of the GDP that cannot be allocated in the current year, such as the livestock and trees in the process of artificial cultivation, and the losses caused by natural and man-made disasters.
Since the supply and demand conditions in different periods affect each other, the convergence between different periods should be considered when calculating the total social supply.The calculation formula can also be expressed as:
Total social supply=total social supply formed in the current period+total balance of supply at the beginning of the period[3]
economic analysis
Announce
edit
The total amount of products and services that a country's producers are willing to produce and reflect through the market in a certain period of time based on a certain price level.Compared with the level of total demand, the level of total supply represents the total output capacity of a country to meet the level of total demand.Its ex post indicators are usually measured by the level of gross domestic product (GDP).In the resource constrained economy, the level of total supply is the main factor determining the growth rate of a country's economy;In a demand constrained economy, the level of aggregate demand is the main determinant of economic growth.In the short term, aggregate supply or aggregate demand may be too large.When the total supply is too large, there will be negative symptoms such as deflation, increased unemployment and slower economic growth. In the short term, measures need to be taken to stimulate the total demand;When the total demand is too large, there will be negative symptoms such as inflation and bubble economy. In the short term, measures need to be taken to curb the total demand.Therefore, the task of macroeconomic management is to coordinate the relationship between aggregate supply and aggregate demand and make them basically balanced.
The total production capacity or full employment output of the national economy.The components of total supply include: consumption, which refers to the consumption income in the national income budget;Savings refers to the part of national income that is not used for consumption: government revenue refers to the sum of various government revenues in a certain period.In a simple formula, total supply=consumption+savings+government income.KeynesianismIt is believed that the balance of national income must make total demand equal to total supply.Keynesianism is essentially depression economics. During the depression period, social products were in surplus, and the general trend was insufficient demand. Therefore, it mainly regulated demand, and the supply side was negative.However, in the period of inflation, the total social demand is strong and the supply is relatively insufficient. At this time, it is of great significance to adjust the total supply.The supply school in the United States takes regulating the total supply as its main management means.
Concepts used in macroeconomic analysis.It refers to the investment of a country in a certain period (such as a year)production factorsThe sum of products and services created (labor, capital goods and land) is relative to the total demand.Total supply can be examined from two aspects: physical form and value form.In terms of physical form, total supply is equal to the total amount of products and services provided by all production departments of a country in a certain period of time (such as a year), that is, total social products.From the perspective of value form, total supply is equal to the total value of products and labor provided by all production sectors of a country in a certain period (such as a year), that is, gross national product.In western economics, the equality of total supply and total demand is regarded as the condition of macroeconomic equilibrium.The formula is Z+Y=C+I+G+X.(where Z represents imports, Y represents the total amount of goods and services, C represents consumption demand, I represents investment demand, G represents government purchase, and X represents exports) The meaning of the above formula is: the total supply of all products of the entire economy (including domestic production Y and import Z), that is, the total supply, must be exactly equal to the total demand of households, enterprises, governments, and foreign countries.In western economics, the balance between total supply and total demand can also be transformed into the following formula: total income=total expenditure.Total income is total supply.Total expenditure is total demand.Total expenditure includes consumption expenditure and investment expenditure.Total income includes wage income, interest income, land rent income and profit income.The formula is: C+I=C+S (where C represents consumption, I represents investment, and S represents savings).
The producer of a country depends on certainprice level The total amount of products and services that are willing to produce and reflect through the market in a certain period of time.In the resource constrained economy, the level of total supply is the main factor determining the growth rate of a country's economy;In a demand constrained economy, the level of aggregate demand is the main determinant of economic growth.
The total output capacity of goods and services of the national economy in a certain period.Western MacroeconomicsImportant concepts of.Generally, the total output provided by the whole society in a certain period is the sum of various factors of production in that period, that is, the sum of income (wages, interest, rent and profits) that various factors of production get correspondingly.
The total supply of goods and services that can meet the total demand in the economy.Total supply includes domestically produced products and services and imported goods and services.In KeynesianismMacroeconomic modelIn the medium and short term analysis, it is assumed that the total supply can adapt to the total demand and increase indefinitely.
The total amount of goods and services that enterprises are willing to provide in an economy (or country) depends on the available resources, technology level, price level and other factors in the economy.Since the total supply is equal to the sum of the supply of various factors of production or the sum of the income derived from various factors of production, we can use the final direction of the income of various factors of production (wages, rent, interest and profits)measureThe quantity of total supply, that is, total supply, includes three main items: consumption, savings and government taxation.By comparing the relationship between aggregate supply and aggregate demand, we can judge the determination and change trend of national income: excess of aggregate supply over aggregate demand will lead to waste of production capacity and unemployment,national incomeLower than the potential output level;The fact that the aggregate supply is less than the aggregate demand can promote the upward adjustment of national income, but it will cause price rise and even inflation;Only when total supply equals total demand can we achieve balanced and stable growth of national income[4]。
