When demand for goods or services drops, what happens to an economy?
Aggregate demand, short-run aggregate supply and long-run aggregate supply come together in one of the most notable models in macroeconomics—negative demand shocks. Learn how they cause short-run changes, followed by long-run changes, to economic indicators like real gross domestic product, price level and unemployment.
Learn more: https://www.federalreserveeducation.org/teaching-resources/economics/growth-and-fluctuations/long-run-equilibrium
About the St. Louis Fed: https://www.stlouisfed.org/about-us
00:00 - Intro
00:20 - Long-Run Equilibrium
01:31 - Short-Run Adjustment
02:40 - Long-Run Adjustment
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