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Most economists use the aggregate demand and aggregate supply model primarily to analyze short-run economic fluctuations.
What is short-run economic fluctuation?
The shifts in demands that cause fluctuation in the economy in the short-run is called short-run economic fluctuation. Aggregate demand is one of the reasons for short-run economic fluctuation.
In macroeconomics, the short run is a time period during which wages and other prices do not respond to changes in economic conditions.
Thus, the most economists use the aggregate demand and aggregate supply model primarily to analyze short-run economic fluctuations.
Learn more about economic fluctuation
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