AP MacroeconomicsAggregate Demand & Supply
Short-Run Aggregate Supply
Short-run aggregate supply is the total supply of goods and services at different price levels, holding factor costs and resource prices constant.
In the short run, an increase in the price level leads to an increase in the quantity of goods and services supplied. This is because firms can earn higher profits by producing more when prices are higher. The SRAS curve is upward sloping.
Interactive graph
AD/AS Model →
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Study module
Aggregate Supply →
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