|
|
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.
Visit the GLOSS*arama
|
|
|
|
|
Lesson 14: Aggregate Supply | Unit 1: The Concept
|
Page: 1 of 20
|
|
In this lesson we will look at the other side of the aggregate market, the aggregate supply, to see how gross domestic product gets produced. Society's scarce resources, with the opportunity cost of their alternative uses, must be combined to produce these goods and services. A Definition: - Aggregate supply is the total, or aggregate, production of final goods and services available in the domestic economy at a range of price level, during a given time period (usually one year).
- Similar to aggregate demand.
The goal of aggregate supply is to combine scarce resources to produce our economy's gross domestic product.- Four resource categories of aggregate supply:
- Labor The people working.
- Capital Tools and equipment.
- Land Raw materials.
- Entrepreneurship Those who assume the risk of production.
- The goods and services produced are supplied to meet the demands of our households, business, government, and foreign sectors.
- Gross production is the supply side of the aggregate market, the supply of real production, or real GDP.
|
|
|
|
|
|
|
SHORT-RUN PRODUCTION ANALYSIS An analysis of the production decision made by a firm in the short run, with the ultimate goal of explaining the law of supply and the upward-sloping supply curve. The central feature of this short-run production analysis is the law of diminishing marginal returns, which results in the short run when larger amounts of a variable input, like labor, are added to a fixed input, like capital. A contrasting analysis is long-run production analysis.
Complete Entry | Visit the WEB*pedia |
|
|
BLACK DISMALAPOD
[What's This?]
Today, you are likely to spend a great deal of time looking for the new strip mall out on the highway wanting to buy either a graduation present for your niece or nephew or a toaster oven that has convection cooking. Be on the lookout for attractive cable television service repair people.
Your Complete Scope
This isn't me! What am I?
|
|
|
Mark Twain said "I wonder how much it would take to buy soap buble if there was only one in the world."
|
|
|
"When you play, play hard; when you work, don't play at all. " -- Theodore Roosevelt, 26th US president
|
|
EBC
Electronic Business Communications
|
|
|
Tell us what you think about AmosWEB. Like what you see? Have suggestions for improvements? Let us know. Click the User Feedback link.
User Feedback
|
|
