Summary: When drawing the Aggregate Demand and Aggregate Supply graphs, don't forget to keep GDP Real on the horizontal axis. Use AD/AS when showing the current state of the economy, the results of Fiscal Policy, or the results of Monetary Policy. Shift aggregate demand for such policies or any change in Consumption, Investment, Government, or Xn. Shift short run aggregate supply when there is a change in Resource prices (such as oil), Actions of government (like subsidies to businesses), or Productivity.
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