Aggregate supply, also known as total output, is the total supply of goods and services produced within an economy at a given overall price in a given period.

What is aggregate supply example?

Examples of events that would increase aggregate supply include an increase in population, increased physical capital stock, and technological progress. The aggregate supply determines the extent to which the aggregate demand increases the output and prices of a good or service.

What are the two types of aggregate supply?

These two types are the long‐run aggregate supply curve and the short‐run aggregate supply curve. By distinguishing them, you have a more realistic overview of an economy's aggregate supply.