Short-run aggregate supply (SRAS)NB While AD is the same whether in the Short Run or in the Long Run: AS (SRAS) in the Short Run is distinguished from AS (LRAS) in the Long Run. This is because of the definitions of the Long Run and the Short Run for a whole economy.
The Short Run for the economy is defined as when there are fixed variables such as infrastructure and technology (LRAS shifters)
Syllabus: Define the term aggregate supply.
Aggregate Supply is defined as the total amount of planned production over a given period of time.
(Again note the important use of the word planned)
Syllabus: Explain, using a diagram, why the short-run aggregate supply curve (SRAS curve) is upward sloping.
This is explained in the interactive diagram below:
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