What is short run equilibrium?

Short run equilibrium refers to a situation in an economy where aggregate supply and aggregate demand intersect at a certain level of output and price, with at least one factor of production being fixed. In this context, firms can adjust their production levels in response to changes in demand, but cannot change all inputs, such as capital or technology, immediately. This equilibrium can result in either economic growth or contraction, depending on shifts in demand or supply. However, it is temporary, as adjustments will eventually lead to a new long-run equilibrium.