Aggregate supply refers to the total quantity of goods and services that producers in an economy are willing and able to supply at different price levels. It is a measure of the output of the domestic economy over a period of time, and does not directly relate to labor services, imported goods, or changes in household wealth due to price level changes.

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Aggregate Supply Is

Question 18

Multiple Choice

Aggregate supply is:

A) the supply of labour services available from households at different prices.
B) the output of domestic goods and services businesses would produce at different price levels.
C) the availability of imported goods and services at different price levels.
D) the increase in household wealth caused by a fall in the price level.

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