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Aggregate Supply Homework Help Team to be your Personal Tutor
AD-AS model is highly significant from macroeconomic point of view. This model involves the interaction between two markets i.e. the goods and service market (aggregate demand model) and the labour market (aggregate supply model). It explains the functioning of the price level and output in the labour market. AS model involves Short Run Aggregate Supply, Long Run Aggregate Supply and Medium run Aggregate Supply. There are few other concepts that need to be studied for understanding the Sticky Wage Theory, Sticky Price Theory and the Misperception Theory.

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