Aggregate Supply Curve

The Aggregate Supply Curve represents the total amount of goods and services that businesses in an economy are willing to produce at different price levels. A higher price level generally encourages more production, as firms can earn more profit. Conversely, lower prices may discourage output. This curve can shift due to changes in factors like production costs, technology, or workforce availability, impacting overall economic activity. In essence, it illustrates the relationship between overall economic demand and the willingness of businesses to supply goods and services at various price points.