Explain What Shocks Can Be Found in the AD-AS Model

question 30

Essay

Explain what shocks can be found in the AD-AS model.Why do these shocks not disappear immediately but rather tend to spread across sectors of an economy?

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Definitions:

Securely Attached

Refers to individuals who have formed healthy and trusting relationships as a result of receiving consistent care and support in early childhood.

Easily Soothed

Refers to the ability to be calmed or comforted with minimal effort.

Adaptable

The ability to adjust to new conditions or changes in one's environment effectively.

Easy Child

A term in developmental psychology describing children who are generally calm, adaptable, and have a positive mood.