Discuss the importance AS-AD model in
Question # 00472640
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Updated on: 01/30/2017 12:17 AM Due on: 01/30/2017
Topic 1
Aggregate Supply (AS) and Aggregate Demand (AD) model and AS/AD curves are essential to understand macroeconomic fluctuations (business cycles).
- Discuss the importance AS-AD model in explaining the macroeconomic conditions of the economy and business cycles like recessions.
- What factors shift AS and AD curves? How do you explain macroeconomic fluctuations using AS-AD model and AS/AD curves?
Macroeconomic goals and macroeconomic equilibrium are the key elements in macroeconomics.
- What are the long-run macroeconomic goals? What is long-run macroeconomic equilibrium? How the goals are relate to the macroeconomic equilibrium?
- Suppose that consumers and investors become pessimistic about the future health of the economy. What will happen to aggregate demand and to output?
- each question 80 words
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Solution: Discuss the importance AS-AD model in