Combining AD and AS Supply Curves

Combining AD and AS Supply Curves - equilibrium price level...

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Combining AD and AS Supply Curves When the aggregate demand and  SAS  (short-run aggregate supply) curves are combined, as in  Figure 1  , the intersection  of the two curves determines both the 
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Unformatted text preview: equilibrium price level , denoted by P * , and the equilibrium level of real GDP , denoted by Y * . Figure 1 Equilibrium in the aggregate demand-aggregate supply model...
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