Aggregate supply responds to higher demand (and prices) in the short run by increasing the use of current inputs in the production process. The level of capital is fixed over shorter periods.

Short-run aggregate demand measures total output for ... Say's law, the basis of supply-side economics, ruled until the 1930s and the advent of the theories of British economist John Maynard ...

It expresses a direct relationship between what producers supply and what consumers demand in an economy and how that ...

Prices, and especially wages, respond slowly to changes in supply and demand, resulting in periodic shortages and surpluses, especially of labor. • Changes in aggregate demand, whether anticipated or ...