In macroeconomics, the Aggregate Supply (AS) curve illustrates the total volume of goods and services that an economy is capable of producing across various price levels.

• The short-run Aggregate Supply (SRAS) curve slopes upward, as rising price levels can boost profit margins temporarily, incentivizing firms to expand output. However, shifts in this curve may occur due to variations in input costs, exchange rates, or taxation policies.
• The long-run Aggregate Supply (LRAS) curve is vertical, positioned at the economy’s full-employment output level. In the long run, productive capacity depends on available resources, technology, and productivity, independent of the price level.