The AD–AS or aggregate demand–aggregate supply model is a macroeconomic model that explains price level and output through the relationship of aggregate demand and aggregate supply. It is based on the theory of John Maynard Keynes presented in his work The General Theory of Employment, Interest and Money .
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a. shortrun aggregate supply curve shifts leftward and the price level falls b. shortrun aggregate supply curve shifts rightward and the price level increases c. shortrun aggregate supply curve shifts rightward and the price level falls d. aggregate demand curve shifts leftward and the price level falls
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Aggregate supply is the total supply of goods and services that firms in a national economy plan to sell during a specific period of time. It is the total amount of goods and services that firms are willing to sell at a given price level. Shortrun Aggregate Supply Curve. In the shortrun, the aggregate supply curve is upward sloping.
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Read and learn for free about the following article: Shifts in aggregate supply ... Real GDP driving price. Costpush inflation. Shifts in aggregate demand. Shifts in aggregate supply. This is the currently selected item. How the AD/AS model incorporates growth, unemployment, and inflation ...
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Consumer Price Index CPI: The Consumer Price Index (CPI) is a measure that examines the weighted average of prices of a basket of consumer goods and .