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Economics

Use an aggregate demand (AD) and aggregate supply (AS) model in which the short run aggregate supply curve slopes upwards to illustrate the equilibrium level of real GDP and prices if the economy is operating:

a) Draw Graph for Following

(i) at full employment,

(ii) above full employment, and

(iii) below full employment.

b) In each case explain the relationship between real GDP and potential GDP.

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Macroeconomics, Economics

Category:- Macroeconomics
Reference No.:- M9164469

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