Representing Macroeconomic Equilibrium with AD/AS Diagrams

This video tutorial explores how to represent macroeconomic equilibrium using AD/AS diagrams, focusing on both short run and long run perspectives. It covers key terminology, the role of price level and real output, and the significance of aggregate demand (AD), short run aggregate supply (SRAS), and long run aggregate supply (LRAS) curves. The tutorial explains how to identify initial equilibrium, output gaps, and the impact of curve shifts on economic variables like inflation and employment. It also highlights the relationship between real output and employment, emphasizing the positive link between them.

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