AD–AS Simulator
Explore the economy in the short run. Shift aggregate demand or supply and watch output and the price level respond.
Aggregate demand & aggregate supply
A simple short-run model. Baseline = 100.
The market starts in equilibrium. Choose an event to see what changes.
What is this?
Aggregate demand (AD) is total planned spending on domestic output. Short-run aggregate supply (SRAS) is the output firms will produce at each price level. Their intersection gives the short-run equilibrium price level and real GDP. This model omits long-run aggregate supply and adjustment over time.
How to use it
Use the − and + buttons or select an example event. Follow the equilibrium point and read the explanation. The price level is an index, not the inflation rate; a change in the index represents a one-time price-level change. Reset to test a new scenario.