Economic Definition of short-run aggregate market. Defined.
Offline Version: PDF
Term short-run aggregate market Definition: A macroeconomic model relating the price level and real production under the assumption that SOME prices inflexible, especially resource prices. The short-run aggregate market isolates the interaction between aggregate demand and short-run aggregate supply. The key assumption of this model is that SOME prices, especially resource prices, are flexible. The primary result of this model is that the economy can achieve short-run equilibrium at real production that is either greater than or less than full-employment.
« microeconomics short run | short-run aggregate supply »
Permalink: https://glossary.econguru.com/economic-term/short-run+aggregate+market