AS-AD model, key categories, macro - Macroeconomics

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Macroeconomic Equilibrium: AS-AD Model Key categories: General macroeconomic equilibrium - supply and demand in an economy with many markets interacts dynamically and eventually culminates in equilibrium of prices Aggregate demand – is an economic measurement of the sum of all final goods and services produced in an economy, expressed as the total amount of money exchanged for those goods and services. Since aggregate demand is measured through market values, it only represents total output at a given price level, and does not necessarily represent quality or standard of living