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Aggregate Supply

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Definition of Aggregate Supply

Aggregate Supply Image 1

Aggregate Supply

Total quantity of goods and services supplied.



Related Terms:

Aggregate Supply Curve

Combinations of price level and income for which the labor market is in equilibrium. The short-run aggregate supply curve incorporates information and price/wage inflexibilities in the labor market, whereas the long-run aggregate supply curve does not.


AS

aggregate supply.


45-Degree Line

A line representing equilibrium in the goods and services market, on a diagram with aggregate demand on the vertical axis and aggregate supply on the horizontal axis.


Floating supply

The amount of securities believed to be available for immediate purchase, that is, in the
hands of dealers and investors wanting to sell.


Money supply

M1-A: Currency plus demand deposits
M1-B: M1-A plus other checkable deposits.
M2: M1-B plus overnight repos, money market funds, savings, and small (less than $100M) time deposits.
M3: M-2 plus large time deposits and term repos.
L: M-3 plus other liquid assets.


Raw material supply agreement

As used in connection with project financing, an agreement to furnish a
specified amount per period of a specified raw material.


Supply shock

n event that influences production capacity and costs in an economy.


Aggregate Supply Image 2

Visible supply

New muni bond issues scheduled to come to market within the next 30 days.


supply-chain management

the cooperative strategic planning,
controlling, and problem solving by a company and
its vendors and customers to conduct efficient and effective
transfers of goods and services within the supply chain


Aggregate Demand

Total quantity of goods and services demanded.


Aggregate Demand Curve

Combinations of the price level and income for which the goods and services market is in equilibrium, or for which both the goods and services market and the money market are in equilibrium.


Aggregate Expenditure Curve

aggregate demand for goods and services drawn as a function of the level of national income.


Aggregate Production Function

An equation determining aggregate output as a function of aggregate inputs such as labor and capital.


Excess Supply

A situation in which supply exceeds demand.


Monetary Aggregate

Any measure of the economy's money supply.


Real Money Supply

Money supply expressed in base-year dollars, calculated by dividing the money supply by a price index.


Aggregate Supply Image 3

Supply

An amount made available for sale, always associated with a given price.


Supply-Side Economics

View that incentives to work, save, and invest play an important role in determining economic activity by affecting the supply side of the economy.


Aggregate planning

A budgeting process using summary-level information to
derive various budget models, usually at the product family level.


Transmission Mechanism

The channels by which a change in the demand or supply of money affects aggregate demand for goods and services.


 

 

 

 

 

 

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