aggregate supply
1 answer
Aggregate supply refers to the total quantity of goods and services that firms are willing and able to produce at a given price level in an economy. It represents the output that firms are capable of producing in the short run and long run. Aggregate supply is influenced by various factors such as technology, input prices, production costs, government regulations, and the availability of resources. The relationship between aggregate supply and price level is represented by the aggregate supply curve, where an increase in price level leads to an increase in the quantity of goods and services supplied, and vice versa.