Economy by relating real gdp and the price level

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Reference no: EM13995268

The AD/AS model describes changes in the economy by relating real GDP (output) and the price level.

A. Compare and contrast the Keynesian portion of the AD/AS model with the classical portion of the AD/AS model, and explain how the level of production is determined in each situation. Use graphs to explain your answer.

B. Compare and contrast changes in aggregate demand and changes in aggregate supply in the AD/AS model. Use graphs to explain your answer.

Reference no: EM13995268

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