Macroeconomics

Table of Contents

1. Topic pack - Macroeconomics - introduction
2. 2.1 The level of overall economic activity (notes)
3. 2.1 The level of overall economic activity (questions)
4. Section 2.2 Aggregate demand and supply (notes)
   1. Aggregate demand and supply - introduction
   2. The AD/AS model
   3. Aggregate demand curve
   4. Changes in aggregate demand
   5. Short-run aggregate supply (SRAS)
   6. Changes in SRAS
   7. Long run aggregate supply (LRAS) - classical
   8. Changes in LRAS - classical
   9. Long run aggregate supply (LRAS) - Keynesian
   10. Aggregate supply changes
   11. Full employment level of national income
   12. Equilibrium national income
   13. The essentials of AD and AS
   14. Changes in short-run equilibrium - summary
   15. Equilibrium in the long run?
   16. Equilibrium in the Keynesian model
   17. Inflationary and deflationary gaps
   18. Keynes vs. Hayek (video)
   19. The Keynesian multiplier
5. Section 2.2 Aggregate demand and supply (simulations and activities)
6. 2.2 Aggregate Demand and Aggregate Supply (questions)
7. 2.3 Macroeconomic objectives (notes)
8. Low Unemployment
9. 2.3 Macroeconomic objectives (questions)
10. 2.4 Fiscal policy (notes)
11. 2.4 Fiscal policy (questions)
12. 2.5 Monetary policy (notes)
13. 2.5 Monetary Policy (questions)
14. Section 2.6 Supply-side policies (notes)
15. 2.6 Supply-side policies (questions)
16. Print View

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:
 

If you would prefer to view this interaction in a new web window, then please follow the link below:

• Short-run aggregate supply curve