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A circuit analysis method in which non-linear elements are replaced with linear elements whose parameters are determined by a linear approximation of the non-linear element's characteristic curve near its bias point. The result is an equivalent circuit that is a good approximation of the original circuit for signals small enough that the non-linear elements behave linearly (hence the name "small signal").
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Why are capacitors treated as shorts in small signal models?
When you treat them as short circuits you are making the assumption the have negligible reactance at the frequencies you are interested in. This is usually true for the coupling capacitors in an ampli …