The total amount of goods and services produced within an economy at a given overall price level and time period.

Also known as 'total output.' Typically there is a positive relationship between the aggregate supply and the price level. When prices increase, businesses tend to expand production to meet a higher level of aggregate demand. Factors capable of influencing aggregate supply include changes in the size and quality of labor, technological innovations, wage increases, rising production costs, changes in producer subsidies and taxes, and changes in inflation.