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 during a specific time period.
Imagine aggregate supply as a buffet table where all the producers bring their dishes. It represents the combined output that all firms in an economy are capable of producing.
Labor Market: The market where workers provide their labor services in exchange for wages.
Production Costs: The expenses incurred by firms in order to produce goods or provide services.
Technology Advances: Innovations or improvements in production methods that increase productivity.
Study guides for the entire semester
200k practice questions
Glossary of 50k key terms - memorize important vocab
© 2024 Fiveable Inc. All rights reserved.
AP® and SAT® are trademarks registered by the College Board, which is not affiliated with, and does not endorse this website.