The purpose of developing and understanding an aggregate supply-aggregate demand model is to help us understand economic growth and business cycles.

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An aggregate supply-aggregate demand model helps us to understand the factors that drive economic growth and the fluctuations that occur within the business cycle. This model can assist policymakers in making informed decisions about fiscal and monetary policies that can promote greater stability and growth in the economy. Therefore, understanding this model is important for both economists and policymakers who want to promote sustainable economic development.

The Purpose of Developing and Understanding an Aggregate Supply-Aggregate Demand