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Scenario 1
the Aggregate Demand (AD) and Aggregate Supply (AS) π\pi

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Scenario 1
The aggregate demand (AD) and aggregate supply (AS) model can be constructed having inflation rate on the vertical axis instead of the price level and the rate of economic growth instead of output.
-Referring to Scenario 1, draw the AD-AS model in terms of inflation ( π\pi ) and rate of growth (g).

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One can start from the AD-AS model in th...

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