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12:15
Khan Academy
Sal Khan
Short run aggregate supply
The aggregate demand-aggregate supply model includes short run economic cycles. The long run aggregate supply doesn't depend on price, but the short run aggregate supply is upward sloping. Two theories justifying the upward slope oinclude the misperception theory and the sticky wages/costs/prices theory.
Mar 23, 2012
Aggregate Demand Curve
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SOLVED: The graph below shows the long-run aggregate supply (LRAS), the short-run aggregate supply (SRAS) and aggregate demand (AD) curves for a given economy. Manipulate the curves to show the short run effect of an increase in money supply.LRASIn the short-run, an increase in the money supply will result in:SRASAggregate Price LevelInterest rates...decreasingThe aggregate price level.. increasingADReal GDP...increasingReal GDPIncorrect.This is the result in the long-run,but we are looking for
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