Aggregate supply
Definition. Aggregate supply is the total quantity of goods and services that all firms in an economy are willing and able to produce at each general price level over a period. The short run curve slopes upward while the long run curve reflects the economy maximum sustainable output.
Short run aggregate supply shifts with input costs and supply shocks, while long run aggregate supply shifts with changes in the quantity or quality of factors of production.
This term belongs to Aggregate Demand and Aggregate Supply in A Level Economics. Read the full chapter for the diagrams, worked examples and exam technique.
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