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TIME PERIOD: One of three elasticity determinants (budget proportion and substitute availability are the other two) stating that the elasticity of a good tends to be greater for a longer time period of analysis. In other words, the price elasticity of demand for gasoline is greater when the time period is one year than when it is one month. This elasticity determinant works for both the price elasticity of demand and the price elasticity of supply. In both cases, longer time periods allow consumers and produces more time to adjust to any price changes.
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SHORT-RUN AGGREGATE SUPPLY: 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. See also | short-run aggregate market | inflexible prices | price level | real production | short run | short-run equilibrium | full employment | business cycles | aggregate output | unemployment | inflation | stabilization policies | long-run aggregate supply |
Recommended Citation:SHORT-RUN AGGREGATE SUPPLY, AmosWEB GLOSS*arama, http://www.AmosWEB.com, AmosWEB LLC, 2000-2022. [Accessed: January 26, 2022].
AmosWEB Encyclonomic WEB*pedia:Additional information on this term can be found at: WEB*pedia: short-run aggregate supply
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ASSUMPTIONS, CLASSICAL ECONOMICS Classical economics, especially as directed toward macroeconomics, relies on three key assumptions--flexible prices, Say's law, and saving-investment equality. Flexible prices ensure that markets adjust to equilibrium and eliminate shortages and surpluses. Say's law states that supply creates its own demand and means that enough income is generated by production to purchase the resulting production. The saving-investment equality ensures that any income leaked from consumption into saving is replaced by an equal amount of investment. Although of questionable realism, these three assumptions imply that the economy would operate at full employment.
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RED AGGRESSERINE
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Today, you are likely to spend a great deal of time at a flea market seeking to buy either a coffee cup commemorating the 1960 Presidential election or a how-to book on fixing your computer, with illustrations. Be on the lookout for the happiest person in the room.
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More money is spent on gardening than on any other hobby.
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"It has been my philosophy of life that difficulties vanish when faced boldly. " -- Isaac Asimov
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CPI-U
Consumer Price Index-All Urban Consumers
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