AD-AS Model Explained

A timely post for my macro classes since we’re starting on the Aggregate Demand-Aggregate Supply (AD-AS) model this week. From EconomicsHelp.org:

Economic growth is an increase in real GDP. It means an increase in the value of goods and services produced in an economy. The rate of economic growth measures the annual percentage increase in real GDP. There are several factors affecting economic growth, but it is helpful to split them up into:

For graphs and explanations, click the more button:

Continue reading