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If aggregate demand and aggregate supply both shift right, we can be sure that the price level is higher in the short run.
Aggregate Demand
The total demand for all goods and services in an economy at a given overall price level and in a specific time period, comprising of consumption, investment, government spending, and net exports.
Aggregate Supply
The aggregate amount of products and services that companies within an economy intend to sell over a certain period.
Price Level
The mean market price of all goods and services produced in the current economy.
- Comprehend the fluctuations in output and price levels triggered by economic policies and external influences.
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Learning Objectives
- Comprehend the fluctuations in output and price levels triggered by economic policies and external influences.
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