Author Question: What is the relationship among the AD, SRAS and LRAS curves when the economy is in macroeconomic ... (Read 82 times)

fox · **on:** Jun 29, 2018

What is the relationship among the AD, SRAS and LRAS curves when the economy is in macroeconomic equilibrium?

What will be an ideal response?

Question 2

What is the difference between income and wealth?

What will be an ideal response?

lkanara2 · **Reply #1 on:** Jun 29, 2018

Answer to Question 1

When the economy is in long-run equilibrium, the short-run aggregate supply curve and the aggregate demand curve intersect at a point on the long-run aggregate supply curve.

Answer to Question 2

Income is a flow variable. It is the amount a household earns over a period of time such as a year. Wealth is a stock variable. It is the amount of assets a household has accumulated at a point in time from past income or through saving or inheritance.