Answer:
The total supply and demand of goods produced at all price levels.
Explanations:
Aggregate supply refers to the total supply of goods and services produced within an economy at a given price over a period of time. Aggregate supply is calculated over a period of one year.
Aggregate supply curve shows the relationship between price levels and the quantity of output firms are willing to produce.
Aggregate demand refers to the total amount of goods and services demanded in an economy at a given price level over a period of time. It is the total demand for goods and services at a given price over a period of time.
Aggregate demand curve shows the relationship between price level and the quantity of goods consumers are willing to buy.
An increase in demand at constant supply causes consumers to compete for the available quantity of goods thereby causing an increase in price.
