The Aggregate Demand Curve | Marginal Revolution University
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Suppose the economy starts at point 1 in the aggregate supply-aggregate demand (AS-AD) graph and at point A on the Phillips curve graph. Points 2 and 3 start out stacked on point 1, but they will need to be moved to the proper locations that reflect steps 2 and 3 described below. Likewise for points B and C.The AS-AD graph reflects two aggregate demand curves (AD1 and AD2), the long-run aggregate supply curve (LAS), and two short-run aggregate supply curves (SAS1 and SAS2). The Phillips curve gr
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