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Publication Date:
OCTober 10, 2011
Industry:
Human Resources
Source:
IESE
The aggregate Supply-aggregate Demand model (aS/aD for short) is designed for analyzing the short-run behavior of a closed economy. The main feature of such an economy is the following cycle: output Y oscillates around its potential or full-employMent level Y*. If Y>Y*, higher inflation is the result; if Y
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