What are the curves on the AD-AS model?
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The aggregate supply (AS) and aggregate demand (AD) model describe the condition of the overall economy; this model is used to predict changes in the price level and output from external shocks to the economy and various government policies.Please describe what the aggregate supply and aggregate demand curves represent; explain what accounts for their shape (i.e., downward sloping AD and upward sloping AD); and give examples of at least two factors each that might result in a shift in AD and AS.
What are some of the factors that would shift the aggregate demand and supply curves. Given your answer, how would an increase in consumer wealth affect the overall US economy using the AS/AD model?
The economy is in short-run equilibrium whenA. the AD and AS curves intersect at potential output Y*.B. the AD and AS curves intersect at a level of real GDP that is above or below Y*.C. the AD and AS curves become vertical.
Ā