No Bull Economics Lessons

Macroeconomics & Microeconomics Concepts You Must Know

Essential Questions

How do you graph an economy at full employment?

Posted on April 16, 2014 at 11:25 AM

To graph an economy that is fully employed, use the aggregate demand and aggregate supply model. The short-run aggregate supply curve, long-run aggregate supply curve, and aggregate demand curve should all intersect at the same spot. Price Level should be labeled on the y-axis and Real GDP should be labeled on the x-axis.

This No Bull Review graph illustrates a fully employed economy using the AD/AS Model. This is also known as an economy's long run equilibrium.

AP Macroeconomics Unit 3 AD/AS & Fiscal Policy

Categories: AP Macroeconomics, Macro Unit 3 AD/AS and Fiscal Policy

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