What accurately describes the AD-AS model?

Expert Solution

AD-AS model is a macroeconomic model is aggregate demand and aggregate supply model which explains the relationship between price level and output based on Keynesian theory. Aggregate demand shows the amount of goods and services demanded or purchased in the economy whereas the aggregate supply curve shows the amount of goods and services produced by the economy. The intersection of the AD and AS curves give the market equilibrium.

Rahul Sunny answered 1 year ago

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