Could someone please explain the AS/AD model to me with regard to macroeconomics? Could you please give me some examples or recomend a good website to me that has a lot of examples?
For example, to show the effect of a stock market crash on the real output and the price level, the AD would shift to the left due to a distribution of income, and, as a result, the price level and the real output would both decrease, right?
If a policy is created to help the economy, it would shift the AD curve to the right and the real output would increase as well as the price level, right?
Thank you very much