SRAS stands for Short-Run Aggregate Supply. It represents the total quantity of goods and services that firms in an economy are willing and able to produce at various price levels in the short run, while some factors of production, such as wages, are considered to be fixed. In the short run, production can be adjusted by changing the intensity of how existing resources are utilized; for example, by having workers work overtime or by using existing machinery more intensively.
New to topics? Read the docs here!