Question: Using the AS-AD framework to think about the first-order macroeconomic dynamics that affect and reveal where an economy lies relative to its potential (output gap)

Using the AS-AD framework to think about the first-order macroeconomic dynamics that affect and reveal where an economy lies relative to its potential (output gap) and the price pressure is associated with that. Note: The AEE ("all else equal") conceptual tool should be used liberally

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