Macroeconomic equilibrium

Equilibrium price level and output in the economy will be determined by the interaction and equilibrium of aggregate supply and aggregate demand
Right shifts in AD will pull up the price level (inflation) and increase real GDP in the short run, returning to full employment output in the long run.
Left shifts in AD will pull down the price level (inflation) and decrease real GDP in the short run, returning to full employment output in the long run.
Right shifts in AS will push down the price level and increase real GDP
Left shifts in AS will push down the price level and increase real GDP
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