Aggregate supply is the total amount that producers in an economy are willing and able to supply at a given price level in a given time period. The short run aggregate supply curve (SRAS) is upward sloping as rising prices incentivise producers to expand their output. The long run aggregate supply curve (LRAS) is vertical as classical economists believe the economy operates at its productive capacity in the long run. SRAS will shift mainly due to changes in costs of production, while LRAS will shift due to any changes in the quality or quantity of the factors of production in an economy.
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