Aggregate Supply

Classical economists, such as John Stuart Mill and Jean Batiste Say, as well as modern economists, including Milton Friedman and John Galbraith, have promoted the importance of supply side factors.

Aggregate supply is the total value of an economy's production of final goods and services available for purchase.

Aggregate supply is determined by three important factors:

1. The quantity of resources

2. The quality of resources

3. The costs of production.