When planned AD is more/less than AS, then the readjustment process involves changes in AS to match the level of AD while AD remains constant

On the other hand, over-full employment equilibrium and under full employment equilibirum involve changes in AD (change in government expenditure, policy) to match the level of AS while AS remains constant

AM I CORRECT????

Dear Student,
Yes, you are absolutely correct in your statements.
Regards

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