mes., in Madrid

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Possible Answers: SRAS.

Last seen on: LA Times Crossword 18 Apr 19, Thursday

Random information on the term “SRAS”:

In macroeconomics, Aggregate Demand (AD) or Domestic Final Demand (DFD) is the total demand for final goods and services in an economy at a given time.[1] It is often called effective demand, though at other times this term is distinguished. This is the demand for the gross domestic product of a country. It specifies the amounts of goods and services that will be purchased at all possible price levels.[2]

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The aggregate demand curve is plotted with real output on the horizontal axis and the price level on the vertical axis. It is downward sloping as a result of three distinct effects: Pigou’s wealth effect, Keynes’ interest rate effect and the Mundell–Fleming exchange-rate effect. The Pigou effect states that a higher price level implies lower real wealth and therefore lower consumption spending, giving a lower quantity of goods demanded in the aggregate. The Keynes effect states that a higher price level implies a lower real money supply and therefore higher interest rates resulting from financial market equilibrium, in turn resulting in lower investment spending on new physical capital and hence a lower quantity of goods being demanded in the aggregate.

SRAS on Wikipedia