Using the ad-as model if consumers and business become more, Microeconomics

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Using the ad-as model if consumers and business become more

Using the AD-AS model, if consumers and business become more optimistic about the future direction of the economy and increase spending, then:

1- Long-run aggregate supply will decrease.

2- Aggregate demand will increase.

3- Aggregate demand will decrease.

4- Long-run aggregate supply will increase.

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Microeconomics: Using the ad-as model if consumers and business become more

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Microeconomics: Using the ad-as model if consumers and business become more

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