Aggregate Demand and Aggregate Supply
Use the graphs to show the new positions of aggregate demand AD short-run aggregate supply SRAS and long-run aggregate supply LRAS in both the short-run and the long-run as well as the short-run ESR and long-run ELR equilibria resulting from this change. The concepts of supply and demand can be applied to the economy as a whole. Lecture 14 Notes Economics Notes Lecture Economics The concepts of supply and demand can be applied to the economy as a whole. . It is only driven by efficiency and improvements in productivity. The foreign exchange market model. Similarities between Aggregate demand and Aggregate supply. Now suppose a 1000-billion increase in net exports shifts each of the aggregate expenditures curves up. And this is often what drives the economy. It is represented by the. This has to do with the factors of production that a firm is able to change during these two different time. The aggregate su