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Aggregate Supply

   Also found in: Acronyms, Wikipedia 0.03 sec.
Aggregate Supply
The total supply of goods and services in an economy at a given overall price and time. Aggregate supply is tracked on an aggregate supply curve, which plots supply against price. When prices are rising, this indicates that the aggregate supply is inadequate to meet aggregate demand; this leads businesses to expand their operations and produce more goods and services. In the short term, aggregate supply is responsive to price movements, but, in the long term, it only increases in response to increased productivity.


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0 percent target in the second quarter of 2011 as aggregate supply and demand return to balance," it said.
The Keynesians generally view the economy in terms of aggregate supply, aggregate demand, and the so-called "output gap" that stems from an excess of aggregate supply (or potential supply) relative to demand.
I think the big question to me is how much of the lost decade was just because the Japanese economy couldn't produce as much as it used to -- that is there was permanent slowing in aggregate supply," he said.
 
 
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