Share This Article:

Economic Definition of AS-AD model. Defined.

Offline Version: PDF

Term AS-AD model Definition: An economic model relating the price level and real production that is used to analyze business cycles, gross domestic product, unemployment, inflation, stabilization policies, and related macroeconomic phenomena. The AS-AD model, inspired by the standard market model, captures the interaction between aggregate demand (the buyers) and short-run and long-run aggregate supply (the sellers).

 

« AS-AD analysis | ASEAN »

Permalink: http://glossary.econguru.com/economic-term/AS-AD+model

Alphabetical Reference to Over 2,000 Economic Terms