Answer: An aggregate supply curve is a graphical representation of the relationship between the total quantity of goods and services that firms are willing to produce and sell at different price levels, holding all other factors constant. The curve is upward sloping, indicating that as the price level increases, the quantity of goods and services supplied also increases.
The vertical axis of the graph represents the price level, while the horizontal axis represents the quantity of output. The aggregate supply curve is divided into two segments: the short-run aggregate supply curve and the long-run aggregate supply curve. The short-run aggregate supply curve is upward sloping, while the long-run aggregate supply curve is vertical.