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The AD (aggregate demand) curve in the static AD–AS model is downward sloping, reflecting a negative correlation between output and the price level on the demand side. It shows the combinations of the price level and level of the output at which the goods and assets markets are simultaneously in equilibrium.
DAD–SAS model; Diamond–Dybvig model; Discrete choice; Dividend discount model; Dixit–Stiglitz model; Domar serfdom model; Double marginalization; Doughnut (economic model) Dual-sector model; Dynamic discrete choice
The LRAS is shown as perfectly vertical, reflecting economists' belief that changes in aggregate demand (AD) have an only temporary change on the economy's total output. Medium run aggregate supply (MRAS) — As an interim between SRAS and LRAS, the MRAS form slopes upward and reflects when capital, as well as labor usage, can change.
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The DAD–SAS model is a macroeconomic model based on the AD-AS model but that looks at the different incomes at different inflation levels.
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Instead of having equations that have no legend on them, how about we use the AD AS relation in a general form. AD: = (,,) AS: = (,) Where Y is Output, is Real Money Stock, G is Government spending, T is Taxes, P is Price level, P e is Price level expected, is the wage markup, L is Labor, and z is a wage catch all variable.
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