How Could We Transform the AD-AS Model Such That,instead of the Price

question 49

Essay

How could we transform the AD-AS model such that,instead of the price level and output it would show the relationship between the inflation rate (p)and the rate of output growth (g)?

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Definitions:

Ordinary Consumer

A term used to refer to an average person who buys goods and services for personal use.

Strict Product Liability

holds manufacturers, distributors, and sellers liable for damages caused by defects in their products, regardless of negligence or fault.

Plaintiff

An individual or entity that initiates a lawsuit or legal action against another party, known as the defendant.

Defective

Pertains to a flaw or deficiency in a product that makes it unsafe or unfit for its intended use.