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Problem on full employment level of employment

What happens when AD > AS past to full employment level of employment?

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This is a state of dis-equilibrium in economics. If AD > AS, producers have to provide to demand out of their existing stock of goods, imply that the desired stage of stocks will reduce. It implies more production and thus there is rise in AS. This method continues till equilibrium is struck among AD and AS.

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  • Q : Problem on full employment level of

    What happens when AD > AS past to full employment level of employment?

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