Acc. to definition of Aggregate Supply
- It is the total value of final goods and services that the producers are willing to supply in country .
Definition of National Income
- It is the value of total output produced by normal residents of a country in given period of time .
AS is what producers are wanting/willing to supply i.e it is not the actual output produced
Whereas National Income is the value of output produced i.e it is the actual value of output that has been produced.
Then how can we say that Aggregate Supply (Willing) = National Income (Actual) ?