Aggregate supply refers to the
A)effects of increases in input prices on output.
B)total output firms wish to produce at each price level.
C)economy's potential output at each possible labour force.
D)decisions of firms to decrease inputs in order to produce outputs.
E)supply of labour inputs in the economy.

Question

Quizplus · Accepted Answer

Aggregate supply refers to the total output that firms are willing and able to produce at each price level. It is not specifically related to input prices or labor supply, but rather represents the level of production that can be achieved given the available resources and technology.

Aggregate Supply Refers to the