Introduction to the Neoclassical Perspective and the AD-AS Model

What you’ll learn to do: describe how the neoclassical model responds to fluctuations in the economy and explain policy recommendations

Hands pointing at a graph.

Now that you have a basic understanding of the neoclassical model, in this section we will take a deeper look into how to graph this model, and how the model will respond to fluctuations in the economy. We’ll also analyze what policy recommendations neoclassical economists would give in order to boost GDP or fix a recession.