The total amount of output of goods and services that firms within an economy are willing and able to supply at a given time and at an overall price level
Short run aggregate supply (SRAS)
The total planned national output at different price levels.
Determinants of AS
Costs of factors of production
Labour costs
Raw material costs
Exchange rate
Interest rates
Bureaucracy and administration
Determinants of AS
Indirect taxes
The slope of the SRAS curve corresponds to the spare capacity of the economy. A steeper slope suggests a lesser degree of spare capacity and a more price inelastic SRAS.
