Q.Explain about Aggregate Supply with the help of diagram.

Aggregate Supply is the total output (in value terms) firms are willing to produce at each level of employment; its curve rises and finally becomes vertical at full employment.

• Meaning: Aggregate Supply (AS) refers to the total value of goods and services that all firms in the economy plan to produce and supply during a period. The aggregate supply price is the minimum amount of sale proceeds that entrepreneurs must expect in order to employ a given number of workers.
• Relation to employment: as more workers are employed, more output is produced, so aggregate supply rises with the level of employment. …