What does the aggregate supply curve represent?

The aggregate supply curve illustrates the total output that an economy can produce at various price levels over a given period. It showcases the relationship between the overall price level in the economy and the quantity of goods and services that producers are willing to supply. As prices increase, firms are generally encouraged to produce more, as higher prices can lead to greater potential profits, thus shifting the quantity supplied.

Understanding this concept is crucial in macroeconomics, as it helps to analyze how changes in overall demand can affect economic output and price levels. The shape and position of the aggregate supply curve can vary depending on various factors, including resource availability, technological advancements, and government policies. This is significant when examining shifts within the economy, such as during expansions or contractions, which reflect changes in real GDP and price inflation.

In context, looking at the other options: total output produced at equilibrium refers specifically to the output at a certain price level where aggregate demand meets aggregate supply, rather than the relationship at various levels. Total input costs for firms and total employment rates address different aspects of the economy and do not encapsulate the core concept of the aggregate supply curve itself.