Explain the two reasons why the aggregate supply (AS) curve is positively sloped.

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Aggregate supply, also called total output, is the total supply of goods and services that is produced within an economy, both at a given overall price and during a given period. It is represented by the aggregate supply curve, which is generally drawn as an upward-rising slope from left to right. The reason for this slope is that product price and quantity supplied are directly related. That is, as the price increases, the amount of the good supplied also increases. However, the relationship depends on other things being equal. The conditions that must remain constant include the number of sellers, static or changing technology, production costs, and related products' prices. If any of these change, it will cause a corresponding shift in the supply curve. There are differences between short-run and long-run tendencies. In the short run, aggregate supply is affected by demand and prices, as higher demand requires an increase in the use of current production inputs, such as labor.

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