the amount of goods that firms would be willing to supply, given their plant and equipment, assuming wages and prices are flexible and adjust to that the labor force is fully employed
A schedule (or graph) that shows the value of output(real GDP) that would be produced at different price levels. In the long run, the schedule shows a constant level of real GDP at all price levels, determined by the economy's productive capacity at full employment. In the short run, the aggregate supply schedule may show different levels of real GDP as the price level changes. View Capstone Lesson(s) that address this concept
Source: Economics: Principles & Practices Definition: the total value of goods and services that all firms would produce in a specific period of time at various price levels (p.442)
It is the total value of the goods and services produced in a country, plus the value of imported goods less the value of exports.
Aggregate supply is the relationship between the aggregate quantity of real GDP supplied (produced) and the price level.
Gross domestic product as measured by the value of goods and services produced, less the cost of production.
Relationship between the level of prices and the quantity of output supplied.
It is the total quantity supplied at every price level.The aggregate supply curve shows the amount that will be supplied by all the firms in the economy at each price level. There is considerable debate amongst economists about the shape of the aggregate supply curve. Most of the argument is centered around whether the shape is different in the short-run as opposed to the long-run curve.Most economists believe, however, that in the short-run there may be some increase in output if demand increases, but in the long-run any increases in demand will be inflationary.
Total supply of goods and services in the economy from domestic sources (including imports) available to meet aggregate demand.
Aggregate supply is the total quantity supplied at every price level. It is the total of all goods and services produced in an economy in a given time period. There is some dispute between Keynesians and Monetarists about what determines the level of aggregate supply. Keynesians argued that supply was determined by the level of aggregate demand, while classical economists followed Say's Law which argued that aggregate supply was determined by supply-side factors.
In economics, aggregate supply is the total supply of goods and services by a national economy during a specific time period. There are at least two different versions of this concept in Keynesian economics.