Answer to Question #88512 in Microeconomics for Martha

Question #88512
According to the AD-AS model, a shift of AS curve from AS to AS1 is the result of
1
Expert's answer
2019-04-29T10:28:42-0400

The AD–AS model is a macroeconomic model which explains price level and the output through the relationship of the aggregate demand and the aggregate supply.

According to this model a shift of AS curve from AS to AS1 is the result of a higher level of productivity, because with an improved productivity, firms or companies can produce a higher or greater quantity of output at each price level thus reflects the rise in potential GDP in the economy.


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