Aggregate demand and GDP commonly increase or decrease together. Aggregate demand equals GDP in the long run only after adjusting for the price level. Short-run aggregate demand measures total ...

Prices, and especially wages, respond slowly to changes in supply and demand, resulting in periodic shortages and surpluses, especially of labor. • Changes in aggregate demand, whether anticipated or ...

The relationship between supply and demand can be expressed using an aggregate supply or aggregate demand curve. Using this ...