The way that the curves are known to affect the economy in the short run is:
- In the short run, price level increases.
- In the short run, real GDP (or aggregate output) increases
What is the short run agrregate supply?
This is an economics model that is used to show what happens in the econmy between the aggregate output and the price level.
In the shortrun the prices are said to be sticky, and there is a positive relation existing for GDP and the price level.
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