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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.
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x=40-0.2p where x=x1+x2 c1=50+2x1+0.5x1 c2=100+10x2
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