The article discusses how prices and quantities of goods and labor adjust in the short run in response to economic conditions. It explores how firms make decisions about production and pricing to avoid inventory buildup and maintain equilibrium. The study shows that in the short term, quantities of goods are determined by past decisions, while labor incomes depend on current decisions by firms. Equilibrium values for interest rates, prices, wages, and employment can be calculated based on expected inflation rates. The research suggests that this framework can help understand economic dynamics in both advanced and developing economies.