Aggregate supply is best described as the a. total output of product.

Aggregate supply is best described as the

a. total output of product.

b. point of equilibrium.

c. nation’s gross domestic product.

d. excess supply in the market.

Answer. a. total output of product.

This is the total production by all companies in an economy over the supply curve during a particular time period for a given level of prices. It is the total new output of each sector of the economy, consisting of the manufacturing sector, service sector, agriculture, and other sectors. This is an important constituent of macroeconomics since it involves an evaluation of an economy’s capacity to produce goods and services and the potential that factors such as technology and capital, employment, and resources can offer. Aggregate supply is not equilibrium supply and demand point, total value of goods and services produced in a given economy– GDP, or anything to do with excess supplies and demands.