Explain the concept of aggregate supply.

Economics Aggregate Demand And Supply Questions



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Explain the concept of aggregate supply.

Aggregate supply refers to the total amount of goods and services that all firms in an economy are willing and able to produce at a given price level and within a specific time period. It represents the overall supply side of the economy and is influenced by factors such as the availability of resources, technology, labor market conditions, and government regulations. Aggregate supply is typically represented by an upward-sloping curve, indicating that as the price level increases, firms are willing to produce and supply more output.