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Aggregate Supply

   Also found in: Acronyms, Wikipedia 0.02 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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1949 Roads, aggregate supply, Bracebridge P1L 1T9 $20M+ asphalt paving, rock 705-645-2214/645-5025 excavation www.
The prospects for the expansion of aggregate supply also appear to be quite favorable.
The real business cycle (Kydland and Prescott 1983 and 1990, Plosser 1989, and Freeman and Kydland, 2000) which is based on micro foundations argues that shocks to aggregate supply such as changes in technology are the driving force for an expansion and contraction.
 
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