Unit 2: Introduction to Macroeconomics

Lesson 12c: The AD/AS Model - Stabilization Policies and AS/AD in the Long Run

Key Graphs

Laffer Curve Long Run AS Long Run Adjustment to a Decrease in AD (first from a to b, then from b to c) Long Run Adjustment to an Increase in AD (first from a to b, then from b to c) Philips Curve

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