The ad shortfal - Study guides, Class notes & Summaries

The AD shortfall. correct answers The amount of additional aggregate demand needed to achieve full employment after allowing for price level changes is Horizontal distance between the aggregate demand curve necessary for full employment and the aggregate demand curve that intersects AS at the equilibrium price. correct answers In a diagram of aggregate demand and supply curves, the AD shortfall is measured as the $3 million - (AD shortfall/multiplier) correct answers If the multiplier equa...