Question

What is full employment with aggregate demand curve

Answer 1

Here is how economists illustrate full employment GDP. The red upward-sloping curve is called the short-run aggregate supply curve, or SRAS for short. This curve represents the economy's total supply of goods and services. The blue downward-sloping curve is the aggregate demand curve, or AD for short. This curve represents the economy's total demand for goods and services. Finally, the black vertical line is called the long-run aggregate supply curve, or LRAS for short. It represents the economy's long-run potential output of goods and services.