
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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Transcribed Image Text:Market Watch, May 24, 2018 discusses, "what happens if the oil rally turns into an 'oil shock' ".
Graphically show the short- and long-term impact of this using the AD-AS model.
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Step 1
Aggregate demand (AD) is the sum total amount of commodities and services demanded in an economy at a particular period of time.
Whereas, the aggregate supply is the total amount of services and commodities that firms in an economic plan to sell throughout a definite period of time.
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