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Explain how the economy achieves equilibrium …

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Explain how the economy achieves equilibrium level of income using AD-AS approach.
  • 1 answers

Palash Kaushik 6 years, 7 months ago

When AD > AS Price level tends to increase which results in increase of AS nd decrease in AD Nd this process will go till then AD = AS Nd when AS > AD Price level tends to decrease which results in increase of AD nd decrease in Ad Nd this process will go till then AD = AD
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