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Learnings Mental Models

Understanding the AD-AS Model: Avoiding the Pitfalls of Irrational Decision-making

Introduction In the realm of decision-making, the AD-AS (Aggregate Demand-Aggregate Supply) model serves as a mental framework that helps individuals and groups understand the dynamics between macroeconomic factors and their potential consequences. Grounded in human psychology, the AD-AS model influences our day-to-day lives in a myriad of ways, shaping personal choices, business strategies, and public […]