Aggregate supply refers to the
A)decisions of firms to decrease inputs in order to produce outputs.
B)effects of increases in input prices on output.
C)economy's potential output at each possible labour force.
D)supply of labour inputs in the economy.
E)total output of goods and services that firms would like to produce and sell.

Question

Quizplus · Accepted Answer

Aggregate supply refers to the total amount of goods and services that producers in an economy are willing and able to supply at a given overall price level, in a given time period. It is not limited to labor inputs or decisions to decrease inputs, nor is it solely about the effects of input prices on output or the economy's potential output based on the labor force.

Aggregate Supply Refers to the