Analogous to the supply curve, a theoretical graph showing the aggregate supply at different price levels.
An equilibrium locus, showing various combinations of real GDP and the price level each of which is consistent with equilibrium in an economy. The long run AS curve is vertical.
Source: Economics: Principles & Practices Definition: hypothetical curve showing different levels of real GDP that could be produced at various price levels (p.442)
A graph of the quantity of real GDP supplied at each price level, holding constant all other influences on firms' production plans.
a curve relating the total supply of the economy's goods and services at each price level, given the level of wages
The aggregate supply curve shows the amount that will be supplied by the firms in the economy at each price level. There is a lot of debate about the exact shape of the curve. Many classical economists and Monetarists argue that the shape differs between the short-run and long-run. In the short-run there may some increase in output if demand increases, but in the long-run any increases in demand will be inflationary. However, Keynesians do not distinguish between the short-run and long-run. They believe in a curve more like
