What describes the total supply of goods and services available in an economy?

Aggregate supply is the term used to describe the total supply of goods and services available in an economy at a given overall price level and in a given time period. It encompasses the sum of all individual supply curves in the economy and reflects the total production capability of all firms in the economy for a certain price level. Understanding aggregate supply is crucial in macroeconomics as it interacts with aggregate demand to determine the overall economic output and the general price level.

The concept of total output relates to the quantity of goods and services produced, but it does not capture the notion of the overall supply available at various price levels across the economy. Economic capacity refers to the maximum output an economy can achieve under conditions of full employment but does not directly address the total supply in relation to price levels. Industry supply, on the other hand, refers to the supply from a specific sector or industry and does not represent the total economy's supply, which aggregate supply does. This comprehensive view makes aggregate supply the correct answer.