differences between the Classical Supply/Demand Model and the AS/AD model

Solution Preview

Please note: Most of the information here I got from class notes and handouts from different economic courses that I have taken.
<br>
<br>Aggregate Demand curves, like ordinary demand curves, reflect the quantity of goods and services being demanded by all members of society at every given price level. However, it reflects the real value of the aggregate quantity of goods relative to some index of prices in the economy (e.g. Consumer Price Index, or the GDP deflator). Instead of noting a relationship ...