The Aggregate Demand-Aggregate Supply Model Shows That There Is No

question 123

Essay

The aggregate demand-aggregate supply model shows that there is no need for government intervention to encourage the economy to move back toward full-employment output.Why then do we see active fiscal policy almost every time the economy is not experiencing full-employment output?

---

Definitions:

Porter's Five Forces

A framework for analyzing the competitive forces within an industry, including competition, potential entrants, substitute products, bargaining power of suppliers, and bargaining power of customers.

WAN

A Wide Area Network is a telecom network that spans a vast geographic area, mainly designed for connecting computers.

LAN

A Local Area Network is a computer network that interconnects computers within a limited area such as a residence, school, laboratory, or office building.

MAN

A Metropolitan Area Network; a network that spans a physical area larger than a LAN but smaller than a WAN, used to connect users in a geographic region.