Question: Is aggregate demand always corrected for in the long-run? I'm writing a paper that asks me to explore factors that affect long-run economic growth and
Is aggregate demand always corrected for in the long-run?
I'm writing a paper that asks me to explore factors that affect long-run economic growth and to discuss them within the AS/AD framework. If long-run growth is affected by inputs and outputs but aggregate demand is affected by GDP factors, does that mean that changes to AD are always short-run and will be corrected in the long-run?
If I am wrong, then what long-run economic growth factors affect aggregate demand?
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