Question

what macro variable represents the seller side of the financial system

Answer 1

Macroeconomics is the branch of economics which looks as the entire group as one. In case of consumers or purchasers, this is reflected in the demand or the aggregate demand which all consumers in the market place have for a particular product or service which is being sold.

On the other hand on the part of the producer or the seller of products and services, this is reflected in the aggregate supply of commodities.

The aggregate supply is also at times knows as the market supply of goods. It represents the overall or aggregate quantity of goods that are produced in the country and thus are sold. It is also representative of the Gross Domestic Product in the country when combined by all industries.

Aggregate supply is a key variable for governments to realize as it represents the quantity of goods being manufactured in the country. In the short and long run, a country is said to be in a state of equilibrium when aggregate demand and supply curves both meet each other. It is then said that the entire country is in a state of equilibrium.

They can also monitor the state of the economy and compare trends with previous historical numbers to analyse whether or not the country is doing good as this is a key and critical variable when deriving the state of the economy.

On the other hand, it helps a government at also tracking its performance with competitors respectively.