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The AS-AD Model allows you to make prediction on what would happen to economic activity if we decide to change a variable in the economy.

The AS-AD Model allows you to make prediction on what would happen to economic activity if we decide to change a variable in the economy. List the variables that affect the SRAS line and the variables that affect the AD line. Where is the economy today? Use the current status of the economy to make a potential prediction for the future, explain your analysis.

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