DAD–SAS model

The DAD–SAS model is a macroeconomic model based on the AD-AS model but that looks at the different incomes at different inflation levels.

DAD curve

The DAD curve is in the long run a horizontal line called the EAD curve.
The short run DAD curve at flexible exchange rates is given by the equation:
The short run DAD curve at fixed exchange rates is given by the equation:

The SAS curve is in the long run a vertical line called the EAS curve.
The short run SAS curve is given by the equation:
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