ASAD Model Part 2 Policy Analysis











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In this video, I use the AS-AD model from the previous part to analyze the adjustments dynamics from the short-run equilibrium to the medium-run equilibrium. In addition, I use the framework to discuss the effects of expansionary fiscal policy, contractionary monetary policy, and an oil price shock. • For the construction of the AS-AD diagram and its interpretation, please refer to part 1 of the lecture: •    • AS-AD Model Part 1: Aggregate Supply ...  

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