SRAS and LRAS I 60 Second Economics
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SRAS and LRAS I 60 Second Economics
SRAS represents the economy’s output when costs like wages are "sticky" and slow to adjust; it slopes upward as higher prices incentivize production. Conversely, LRAS is a vertical line representing potential output when all costs are flexible. SRAS shows short-term fluctuations, while LRAS reflects long-term productive capacity.
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