when the quantity of aggregate output furnished is equal to the extent of mixture output demanded; graphically, this is the price level and real GDP related with the intersection of the SRAS and AD curves.
Short-run equilibrium happens at the intersection of the combination demand curve with the short-run combination furnish curve. The short-run mixture provide curve relates the volume of complete output produced to the fee degree in the quick run. It is upward sloping because of wage and rate stickiness.
On a graph, this happens at the point the place the AD curve intersects the short-run common provide curve, precisely on the long-run aggregate supply curve.
Learn more about short-run equilibrium here:
