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The Econ Ace
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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.

005050100100150150200200E₁ = E₂ SRASADReal GDP (index)Price level (index)
Aggregate demandShort-run aggregate supplyOriginal curves
Equilibrium price level
100
Real GDP · index
100
Your starting point

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.