In the basic AD/AS macro model,it is assumed that,for any given interest rate,the demand for money depends on the

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In the basic AD/AS macro model, the demand for money is assumed to depend on the level of real GDP and the price level. This is because the demand for money is largely driven by transaction motives, which in turn depend on the volume of goods and services being exchanged in the economy. The price level also plays a role, as higher prices increase the amount of money people need to carry out transactions. Therefore, as real GDP and the price level change, so does the demand for money.

In the Basic AD/AS Macro Model,it Is Assumed That,for Any