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?
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 ...
AS/AD model is applied.