The as-ad model with inflationwhen we remove assumption of, Ask an Expert

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The AS-AD model with inflation

When we remove assumption of constant prices to allow varying real wages. Resulting model was known as AS-AD model. Similarly we now remove the assumption that Π = Π_w (but Πmay only deviate from Π_wtemporarily and they should be equal on the average).

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Macroeconomics, Economics

Category:- Macroeconomics
Reference No.:- M9578257

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