Sunday, April 1, 2018

AS/ AD model

Image result for ad as model
Full employment

  • full employment equilibrium exists where AD intersects SRAS and LRAS at the same point
recessionary Gap
  • a recessionary gap exists when equilibrium occurs below full employment output 
inflationary Gap 
  • an inflationary gap exists when equilibrium occurs beyond full employment output
  • n% 
at

2 comments:

  1. UnknownApril 5, 2018 at 10:39 PM

    This comment has been removed by the author.

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  2. UnknownApril 5, 2018 at 10:40 PM

    Nice blog post. You should consider adding the causes of the changes in these graphs

    ReplyDelete

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