Question
I want to understand the aggregate demand and supply and their differences ? 2. And what's the Short run and long run aggregate supply and
- I want to understand the aggregate demand and supply and their differences ?
2. And what's the Short run and long run aggregate supply and demand ( what happens to the price level, unemployment , RGDP , inflation) - positive and negative shocks . I want to understand when these concepts appear in what kind of situations. I have difficulty understanding these concepts in a graph: I would like to get explanations like this one:Assume an economy experiences a negative shock in the aggregate demand, what happens to price and RGDP in the short run? Decrease, decrease.
In brief I just want to know in what kind of situations what decreases and what increases, what's neutral ... all the possibilities that might happen.
- What causes stagflation?
- What's potential GDP
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