Visiting africa for Aggregate supply relates the economy's price level, measured by the GROSS DOMESTIC PRODUCT (GDP) price deflator, and aggregate domestic production, measured by real GDP. The aggregate supply relation is generally separated into long-run aggregate supply, in which all prices and wages are flexible and all markets are in equilibrium, and shortrun aggregate supply, in which some prices and wages are not flexible and some markets are not in equilibrium. Different from individual or industry supply curves, the aggregate supply curve shows the amount that will be supplied by all firms in the economy at every price level. In the past decades, there has been considerable dispute between economists in the classical tradition and Keynesians about what determines the level of aggregate supply and about the exact shape of the aggregate supply curve. Keynesians argue that the level of aggregate demand determines supply, while classical economists propose that aggregate supply is determined by supplyside factors.
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814 supply Q1Q2 Price Output (market) A Demand Short-run supply Long-run supply P1 P2 B Price Output (market) Q1 Demand Short-run supply Long-run supply P1 Price Demand P1 P2 Case (a): Initial condition (very short run) Case (b): Short-run response Case (c): Q1Q2 Price Output (market) A Demand Short-run supply Long-run supply P1 P2 B Price Output (market) Q1 Demand Short-run supply Long-run supply P1 Price Output (market) A Q1 Demand Short-run supply Long-run supply P1 B Q2 P2 Q3 C Case (a): Initial condition (very short run) Case (b): Short-run response Case (c): Long-run response Classical economists, supply-siders and monetarists hold that the shape of the curve differs between the short run and the long run. Short-run aggregate supply (SRAS) is the total real production of final goods and services available 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. Visiting africa 2016.