The aggregate demand and supply model can be used to describe changes in an economy's price level and real GDP in the short and the long run.
The combination call for/combination deliver version is a version that indicates what determines overall deliver or overall call for for the economic system and the way overall call for and overall deliver have interaction on the macroeconomic stage. Aggregate deliver is the overall amount of output corporations will produce and sell—in different words, the actual GDP.
The intersection of the economic system's combination call for and long-run combination deliver curves determines its equilibrium actual GDP and charge stage withinside the lengthy run. The quick-run combination deliver curve is an upward-sloping curve that indicates the amount of overall output on the way to be produced at every charge stage withinside the quick run.
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