Macroecon

Define Aggregate Demand

The total value of all goods and services demanded in the economy, per time period.

Define the term short run aggregate supply (SRAS)

The relationship between the general price level and the quantity of real national output firms are willing and able to supply.

Define the term fully employment 

Refers to the natural state of unemployment in the economy where there is no cyclical or demand deficient unemployment. There is an acceptable level of unemployment which consists of some structural, frictional, and seasonal unemployment.

Define the term long run aggregate supply (LRAS)

LRAS refers to the total supply in an economy that is dependent upon the factors of production and the state of production, so is independent of the general price level. It represents the potential national output in the economy at a point in time.