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Q. Aggregate supply in AS-AD model?
In order to figure out all the variables in AS-AD model, we need one more equilibrium condition so that we can identify a unique point on AD curve as the unique equilibrium. This condition will come from production side and labor market.
Why is it important to study the internal resources, capabilities, and activities of firms? What insights can be gained?
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c=100+0.8yd
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