Basics of Macroeconomics Aggregate Supply

 Aggregate supply tells the quantity of goods and services supplied in an economy at a given price level.  It tells the total amount of goods and services that all businesses are willing to produce at different price levels.

The Short-Run Aggregate Supply Curve

SRAS-curve shifts due to factors including - Changes in resource prices - Changes in business taxes - Change in subsidies - Supply shocks

Increasing Aggregate Supply in the Long Run  Improved efficiency  New technology  Decreased unemployment levels  Institutional reforms