Economy, asked by abdullah121824, 2 days ago

How does the output change, if equilibrium changes by increasing AD more than the increase in AS? Explain with the help of a diagram.

Answers

Answered by ISHANT0000007

0

Answer:

An increase in any of the components of aggregate demand shifts the AD curve to the right. When the AD curve shifts to the right it increases the level of production and the average price level. When an economy gets close to potential output, the price will increase more than the output as the AD rises.

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