Explore BrainMass

Explore BrainMass

    AS/AD model

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    What are some measures of total ouput on the horizontal axis of the AS/AD model? Which measure do you think represents the most accurate picture of the output of an economy? why?

    © BrainMass Inc. brainmass.com March 4, 2021, 5:54 pm ad1c9bdddf

    Solution Preview

    The AS/AD economic model relates the price level and real production that is used to analyze business cycles, gross domestic product, unemployment, inflation, stabilization policies, and related macroeconomic phenomena. The AS-AD modelcaptures the interaction between aggregate demand and short-run and long-run aggregate supply.
    <br>Some of the measures of total output on the horizontal axis of the AS/AD model can be productivity and real GDP, the real interest rate, savings, investment, the real ...

    Solution Summary

    AS/AD model is applied.