Respond to the following in a minimum of 175 words: Discuss how the economy returns to equilibrium in response to changes in aggregate demand (AD) and aggregate supply (AS) in both the short run and...

Equilibrium in aggregate demand (AD) and aggregate supply (AS) in both short-term and long-term
Changes in Aggregate Demand and Aggregate Supply occur in both short-term and long-term in an economy. However, these are adjusted to return to equilibrium over a specified period.
Long-term, in macroeconomics refers to a period with flexible prices and wages. That is why in the long-term, opportunities of employment are at the natural levels and the Gross Domestic Project...