Thanks for watching In this video I explain the law of demand, the substitution effect, the income effect, the law of diminishing marginal utility, and the These curves are used to model the general equilibrium and have been given two equivalent interpretations First, the ISLM model explains the changes that occur in national income with a fixed shortrun price level Secondly, the ISLM curve explains the causes of a shift in the aggregate demand curveIn economics, output is the quantity of goods and services produced in a given time period The level of output is determined by both the aggregate supply and aggregate demand within an economy National output is what makes a country rich, not large amounts of money
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