The blue sheet is aggregate demand (falls as price rises), the orange
sheet is aggregate supply (rises as price rises). Their intersection line
projected onto the price/output floor is the macroeconomic equilibrium —
the white marker eases toward it each frame, slower when prices are
stickier.
AD(P) = 100 + ad_shift − k·P
AS(P) = 100 + as_shift + k·P
equilibrium: AD(P*) = AS(P*) → P* = (ad_shift − as_shift) / (2k)
adjustment_speed ∝ 1 / price_stickiness
- Demand shift — moves the whole AD sheet (fiscal/monetary stimulus, exports, confidence).
- Supply shift — moves the whole AS sheet (input costs, productivity, supply shocks).
- Price stickiness — how slowly prices adjust toward the new equilibrium after a shock; higher stickiness means a slower-moving equilibrium marker.