I can't seem to understand why the agg demand curve and agg supply curve both have real gdp at the horizontal axis and price level at the vertical axis. How can the relation between two same variables be different in two curves? The answer I got from my professor was that the horizontal of agg demand represents quantity of real gdp demanded while the horizontal of agg supply is quantity of real gdp supplied.

Although this conceptually makes sense, measuring two distinct concepts with the same variable(real gdp) sounds nonsensical to me. Besides, what does it even mean to say something like quantity of real gdp demanded vs quantity of real gdp supplied. Like there's only one definition of real gdp. The only way this would make sense to me is if we put at the horizontal of agg demand the real value of the goods people wish to buy, and likewise for agg supply. But then they will be anything but real gdp.

To put this into perspective with what I learned in micro, in micro there is a clear distinction between quantity supplied and quantity demanded, and we treat them as distinct throughout our study. But there doesnt seem to be any analogous distinction made in macro.

Again I might be overlooking something trivial, any ideas?



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