Question: Section 2: Model Assumptions and Resultant Outcomes [200 word maximum] The 2 models you have used have different underlying assumptions. - Outline the major underlying

Section 2: Model Assumptions and Resultant Outcomes [200 word maximum] The 2 models you have used have different underlying assumptions. - Outline the major underlying difference(s) between the two models. . Briefly discuss and illustrate how the difference(s) in the model assumptions impact the degree of the potential impact on the economy. Use the AD-AS Model and provide ONE diagram to illustrate the potential difference in outcomes depending on the assumptions made. (Hint - consider the assumptions underlying the AE model - what SRAS curve reflects this?)

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