Aggregate supply

Definition: Total planned output of goods and services that businesses within an economy are willing and able to supply at a given general price level at a given time.

Long run aggregate supply represents a maximum output when all factors of production are fully and efficiently employed

Output - (what you make)

A rise in the general price level usually stimulates an expansion of short-run aggregate supply as producers respond to higher demand and prices

A fall in the general price level usually leads to a contraction of short run aggregate supply as producers cut back production