Discussion questions below. Discussion must contain a minimum of 150 words with reference.
Aggregate Supply (AS) and Aggregate Demand (AD) model and AS/AD curves are essential to understand macroeconomic fluctuations (business cycles).
- Discuss the importance AS-AD model in explaining the macroeconomic conditions of the economy and business cycles like recessions.
- What factors shift AS and AD curves? How do you explain macroeconomic fluctuations using AS-AD model and AS/AD curves?