Based on Your Understanding of the AS- AD Model and the IS-

question 12

Essay

Based on your understanding of the AS- AD model and the IS- LM model, graphically illustrate and explain what effect a decrease in the price target will have on the economy. In your graphs, clearly illustrate the short- run and medium- run equilibria.

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Definitions:

Stem Cells

Undifferentiated cells with the potential to develop into various cell types for tissue growth, repair, and regeneration.

Specialized Cell

A cell that has a unique structure and function, distinctively equipped to perform a specific task within an organism.

Plasticity

The capacity of the brain to change and adapt in response to experience, learning, or injury.

Speech Centre

Regions in the brain responsible for the processing and production of speech and language.