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What Is The Balance Between Aggregate Demand And Aggregate Supply?
The equilibrium between aggregate demand and aggregate supply is balanced when the aggregate supply is equal to the total demand.
At the equilibrium point, the product market and money market that decide the aggregate demand and the labor market that determines the total supply are in equilibrium at the same time.
At this point, the aggregate demand determined by the equilibrium of product and money market just makes the products produced by the labor market equilibrium determined completely change.
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