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Section 3 of the Keynesian AS curve

In section 3 of the Keynesian AS curve, aggregate supply is perfectly price inelastic (vertical) as there is no longer any spare capacity in the economy, that is, all factor resources are fully employed.

Where this appears

The syllabus topics that use this term.

  • 3.2Shifts of the LRAS or Keynesian AS Curve

Taught in Variations in Economic Activity: Aggregate Demand and Aggregate Supply

All 809 terms
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