Description                                  
The narrator describes the overall demand for products in terms of aggregate output. 

Narrator: 
It's relatively straightforward to conceptualize supply, demand and market equilibrium for individual products like Ostrich burgers. But, when we consider the overall demand for all products in the economy, we realize we are dealing with complex interactions between buyers and sellers of millions of different products. 

Narrator: 
In macroeconomics, we abstract from the millions of relationships by speaking of aggregate output...that is, the total quantity of final goods and services produced in the economy during a given time period. Aggregate output is commonly described in terms of the Gross Domestic Product, or GDP.  

Narrator: 
The price level in the overall economy is a composite measure reflecting the price of food, clothing, housing, automobiles, medical care, entertainment, and all other output. Aggregate demand is the relationship between the average price level in the economy and the aggregate output demanded, all other things being constant. 

Narrator: 
The aggregate demand curve exhibits the inverse relationship between price level in the economy and quantity of aggregate output demanded.  

Narrator: 
The aggregate supply curve shows the quantity of aggregate output that producers are willing to supply at each price level. The upward sloping curve shows a positive relationship between price level and aggregate quantity supplied. 

Narrator: 
The intersection of the aggregate demand and aggregate supply curves determines the levels of equilibrium price and aggregate output in the economy. 

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