Aggregate demand equals GDP in the long run only after adjusting for the price level. Short-run aggregate demand measures total output for a single nominal price level without adjusting for inflation.

Short-run aggregate demand measures total output for a single nominal price level (not necessarily equilibrium). In most macroeconomic models, however, the price level is assumed to be equal to ...

• Changes in aggregate demand, whether anticipated or unanticipated, have their greatest short-run effect on real output and employment, not on prices. Keynesians believe that, because prices are ...

My first bit of evidence [that the short run is over] is corporate profits. They are at an all time high, around two-and-a-half times higher in nominal terms than they were during the late 1990s ...

Aggregate demand curve explained . The aggregate demand curve represents the total quantity of goods and services which are currently in demand at different price levels. It is usually assumed that ...

The short-run curve depicts aggregate supply from the time prices increase to the point at which wages increase to match them. The long-run curve, on the other hand, depicts aggregate supply after ...

The primary difference between SRAS and LRAS is the effect that aggregate demand has on each. In SRAS, capital is fixed, which mean any changes in aggregate demand will affect what a manufacturer can ...