Aggregate supply is the
A) real GDP that firms will produce at varying price levels.
B) total supply over a span of several years.
C) amount of goods, but not services, firms supply at various price levels.
D) amount of output that is sold at each price level.

Question

Quizplus · Accepted Answer

Aggregate supply is the total amount of goods and services that firms will produce at different price levels over a given period of time. It is typically graphed as a vertical line, with the quantity of output on the y-axis and the price level on the x-axis. The upward slope of the aggregate supply curve reflects the fact that higher prices provide an incentive for firms to increase production, while lower prices lead to a reduction in output.

Aggregate Supply Is the