Interactive simulator

AD-AS Model Simulator

The aggregate demand-aggregate supply model scales supply-and-demand thinking up to the whole economy. This simulator draws downward-sloping aggregate demand and upward-sloping short-run aggregate supply: their intersection gives the price level and real GDP. Shift AD with fiscal or monetary policy, or shift SRAS with oil-price or productivity shocks, and watch inflation and output move. In this release this page is powered by the closest available interactive widget; a dedicated widget for this topic is planned.

030609012015001020304050Quantity QPrice PDSE (Q*=64, P*=18.0)
Qd = 100 − 2PQs = 10 + 3PEquilibrium price P* = 18.00Equilibrium quantity Q* = 64.00
Reading the market

Equilibrium solves Qd = Qs, so P* = (a − c) ÷ (b + d). Shifting demand changes a; shifting supply changes c. A ceiling only bites when set below P* (creating a shortage); a floor only bites when set above P* (creating a surplus).

How to use it

  1. Shift aggregate demand to model a stimulus or a spending cut.

  2. Shift short-run aggregate supply to model an oil-price shock.

  3. Read the new price level and real GDP at the intersection.

What you will learn

  • Explain how AD and SRAS shifts move prices and output.
  • Distinguish demand-pull from cost-push inflation.
  • Connect policy actions to AD shifts.

Model notes

The AD-AS model is a teaching simplification; modern macroeconomists debate its microfoundations. Expectations, long-run adjustment, and the financial sector are compressed. No real GDP data is used.