In order to fulfill the demand for goods and services created in the economy during a certain period the economy must assess the total supply available.
The concept of aggregate supply refers to the amount of goods and services produced within an economy from local sources that are accessible to fulfill aggregate demand.
Let us consider an illustration to understand how this connects to trading. If a nation is able to fulfill its demand with a robust domestic supply; it indicates a healthy economy and generally supports a stronger currency.
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