What does the Aggregate Supply Curve represent in an economy?

The Aggregate Supply Curve represents the total amount of goods and services that producers in an economy are willing to sell at different price levels. It shows how production changes as prices change, indicating that when prices rise, businesses are likely to produce more because they can earn higher profits. For example, if a bakery sees that the price of bread increases, it might decide to bake more loaves to take advantage of that higher price. The curve usually slopes upward, reflecting the idea that higher prices can motivate more production. Understanding this curve helps us see how supply responds to economic changes and can influence overall economic growth.