Define or Explain the following concept: 3) Aggregate Supply

Define or Explain the following concept:
3) Aggregate Supply
Answer: Aggregate supply: Aggregate supply refers to the aggregate production planned by all the producers during an accounting year. In other words, aggregate supply indicates the total amount of goods and services produced within an economy at a given general (or overall) price level during an accounting period. The aggregate supply function is represented as follows.


where,
AS = Aggregate supply
N = Natural resources
L = Labour
K = Stock of capital
T = State of technology

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