Question

In an economy, aggregate demand is more than aggregate supply. Is the economy in equilibrium?

If not, explain the changes that will bring the economy in equilibrium.

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Answer 1

Answer:

If Aggregate Demand (AD) is less than Aggregate Supply (AS), then economy is not in equilibrium because an economy is in equilibrium when AS = AD. When AD < AS, flow of goods and services in the economy tends to exceed then demand. As a result, some of the goods would remain unsold

Step-by-step explanation:

hopes it helps you brother

Answer 2

open both the attachments.

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hehehe...

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