Share This Article:

Economic Definition of short-run aggregate supply. Defined.

Offline Version: PDF

Term short-run aggregate supply Definition: The total (or aggregate) real production of final goods and services available in the domestic economy at a range of price levels, during a period of time in which some prices, especially wages, are rigid, inflexible, or otherwise in the process of adjusting. Short-run aggregate supply (SRAS) is one of two aggregate supply alternatives, distinguished by the degree of price flexibility; the other is long-run aggregate supply. Short-run aggregate supply is combined with aggregate demand in the short-run aggregate market analysis used to analyze business-cycle instability, unemployment, inflation, government stabilization policies, and related macroeconomic topics.

 

« short-run aggregate market | short-run aggregate supply and market supply »

Permalink: http://glossary.econguru.com/economic-term/short-run+aggregate+supply

Alphabetical Reference to Over 2,000 Economic Terms