Aggregate Supply
Aggregate supply (AS) represents the total output firms are willing to supply at different price levels. It includes short-run aggregate supply (SRAS, upward sloping) and long-run aggregate supply (LRAS, vertical or slightly upward sloping). AS determines the economy's productive capacity.
Real World
China's massive investment in factories, roads, and education between 2000 and 2020 shifted its LRAS rightward, enabling GDP to grow from $1.2 trillion to over $17 trillion without sustained inflation.
Exam Focus
Always specify whether you mean SRAS or LRAS — using just 'AS' without distinction loses marks on diagram questions.
How well did you know this?