q determination of variables in as-ad modelonce y, Macroeconomics

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q determination of variables in as-ad modelonce y

Q. Determination of variables in AS-AD model?

Once Y and P are determined, all other endogenous variables would be determined as well. Interest rate is determined by money market diagram and components of GDP are either exogenous or they rely on R or Y. W is constant and as P is determined, so is real wage. Then L and unemployment rate is determined as well.

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Macroeconomics: q determination of variables in as-ad modelonce y

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