Aggregate Supply (AS)

Definition

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.

Related terms

Short-run aggregate supply (SRAS): Represents the relationship between price levels and total output in the short run when input prices are fixed.

Long-run aggregate supply (LRAS): Represents the relationship between price levels and total output in the long run when input prices can adjust fully.

Productivity: The efficiency with which inputs (such as labor or capital) are used to produce outputs.