Aggregate Supply
The total quantity of goods and services produced by all sellers at various price levels.
- The higher the price the greater the aggregate quantity supplied, the lower the price the lower the aggregate quantity supplied.

Determinnts of AS
1. Change in the cost of the factors of production - cofp goes up -> S goes down -> P goes up -> wages to go up -> AS to go down( stagflation started with AS down)
2.Change in availability of natural resources - Ans goes down -> AS down
3.Change in real capital- less capital goods -> AS goes down -> p goes up -> real GDP goes down
4.Change in technology - less capital -> AS to go down
5.Change in quality and quantity of labour - less quality and quantity of labour -> AS to go down

No 1. cost of production shifts only the AS curve
Note no 2 to 5 are factors that lead to economic growth and they also cause shift in the potential GDP.( increase in the last 4 will cause an increase to potential GDP0
Potential GDP is independent of prices because it shows the amount we can produce if we use all our resources.

( Morris, Alan J., and Sayre, John E. Principles of Macroeconomics: 6th Edition. United States: The McGraw-Hill Companies, 1942.)