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June 07, 2005
Aggregate Supply in a Keynesian Setting
We next consider the Aggregate Supply curve. The Keynesian and Classical Models both explain shifts in the AD curve, but the effect depends on the slope of the AS curve. (The topic spanned Monday and Tuesday.)
The Classical Economists see price expectations adjusting rapidly, making the AS curve vertical.
Posted by bparke at June 7, 2005 10:55 PM