Aggregate supply is:
A)total quantity of the production of all the households in the economy.
B)total quantity of goods and services demanded in the economy.
C)market value of the total quantity of goods and services demanded in the economy.
D)market value of the total quantity of goods and services supplied in the economy.

Question

Quizplus · Accepted Answer

Aggregate supply refers to the total quantity of goods and services that all firms are willing and able to produce and supply at a given price level in a given period of time. It does not include the production of households and their consumption expenditures (A), nor does it refer to the total quantity of goods and services demanded (B and C).

Aggregate Supply Is