Aggregate supply

Heterodox

In ]

Analysis

There are two main reasons why the amount of aggregate output supplied might rise as price level P rises, i.e., why a AS curve is upward sloping:

Aggregate administer is targeted by government "supply-side policies" which are meant to put productive efficiency & hence national output. Some examples of supply-side policies put education & training, research and development, supporting small/medium entrepreneurs, decreasing business taxes, making labour market reforms to diminish frictions that may clear down output, and investing in infrastructure.