The Aggregate Supply (AS) Curve represents the total quantity of goods and services that firms in an economy are willing and able to produce at each price level within a given range of prices. Illustrated on a graph, the curve typically slopes upward, indicating that higher price levels generally encourage firms to increase production.
Deflation refers to a general decrease in prices across a range of goods and services. It is often associated with reduced levels of output, employment, and trade. Unlike controlled disinflation, deflation can have severe negative impacts on the economy.
Gross National Product (GNP) is a financial metric that measures the total economic output of a country's residents, regardless of the geographic location of the output.
Real GDP, or Real Gross Domestic Product, measures the value of economic output adjusted for price changes (inflation or deflation).
