classic as/ad model long and short run

Question 1

classical as/ad model assumptions (SRAS, AD, equilibriums, assumptions in short and long run

Answer 1

-sras: cost of prod
-lras: q^2cell
-sr equilibrium:AD=SRAS
-lr equilbirum:AD=LRAS=SRAS
-short run where wages fixed (high min wages, unemployment benefits high, strength of TU’s)
-long run where wages aren’t fixed
-in long-run, economy is always at full employment level of output