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Understanding Aggregate Supply: A Comprehensive Overview Aggregate supply (AS) is a crucial concept in macroeconomics, representing the total quantity of goods and services that an economy can produce at a given overall price level in a specified period. This measurement is integral for determining the health and stability of an economy, impacting everything from inflation to employment levels. By understanding the factors that influence aggregate supply, policymakers and businesses can make more informed decisions that guide economic growth. One of the key determinants of aggregate supply is the production capacity…
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