Model of aggregate demand-aggregate supply


1) Briefly describe the model of aggregate demand and aggregate supply. Which macroeconomic variables does it explain?

2) Which factors determine aggregate demand?

3) Describe how a dollar depreciation would affect aggregate demand and aggregate supply?

4) Apply the model of aggregate demand and aggregate supply to explain the demand-pull and cost-push inflation.

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Macroeconomics: Model of aggregate demand-aggregate supply
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