Aggregate Supply

 

Aggregate Supply is the volume or total output of physical and intangible products supplied within an economy at a given price level. It is modeled by the aggregate supply curve and central to both micro and macroeconomics (though viewed from different angles). Factors affecting aggregate supply include capital, labor, wages and whether or not any of the factors of production are fixed (one is in the short run but none are in the long run). When combined with the aggregate demand curve the equilibrium price level and equilibrium output can be determined.

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