What does a short run aggregate supply curve shows?

The short-run aggregate supply (SRAS) curve illustrates the relationship between the overall price level in an economy and the quantity of goods and services that firms are willing to produce in the short run. It typically slopes upward, indicating that as prices rise, firms are incentivized to increase production due to higher profit margins. This upward slope reflects the presence of fixed costs and input prices in the short run, which do not adjust immediately to changes in demand. Thus, the SRAS can shift due to factors like changes in input costs, productivity, or supply shocks.