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This model uses static comparative statics -- no genuine time axis exists.
A positive demand shock shifts the DAD curve rightward, raising both output and inflation.
An adverse supply shock shifts the DAS curve upward, raising inflation while lowering output.
Expected inflation rises above target, shifting DAS upward even without a real supply disturbance.
Diagram, readouts, and summary update with each change.
Structure
Policy
State
Shocks
Impact summary
Short-run equilibrium
Output
100.0
Inflation
2.00
Output gap
0.0
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