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· Aggregate supply (AS) is defined as the total amount of goods and services produced and supplied by an economy's firms over a specific time period at given price levels.
This chapter also relates the model of aggregate supply and aggregate demand to the three goals of economic policy (growth, unemployment, and inflation), and provides a framework for thinking about many of the connections and tradeoffs between these goals.
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Shortrun Aggregate Supply. In the shortrun, the aggregate supply is graphed as an upward sloping curve. The equation used to determine the shortrun aggregate supply is: Y = Y * + α(PP e).In the equation, Y is the production of the economy, Y* is the natural level of production of the economy, the coefficient α is always greater than 0, P is the price level, and P e is the expected price ...
· In previous entries in our section of Concepts of Economics we have studied what are supply and demand as well as what are its conditioning time we will explain aggregate supply and aggregate begin with, we will start from the basis that the internal forces of the market, that is, the behavior of the economic agents of a country, are reflected in the supply and .
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