EconLearn
AP MacroeconomicsAggregate Demand & Supply

Aggregate Supply

Aggregate supply is the total supply of final goods and services in an economy at a given time.

Aggregate supply represents the total amount of goods and services that firms plan to produce and sell at a given price level. In the short run, aggregate supply can increase or decrease with changes in the price level. In the long run, aggregate supply is determined by an economy's factors of production.

Related terms

AP® is a trademark registered by the College Board, which is not affiliated with, and does not endorse, EconLearn.