ECONOMICS
AGGREGATE DEMAND
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Classical Range
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Keynesian Range
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Intermediate Range
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Non-essential Range
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Detailed explanation-1: -The three ranges of the aggregate supply curve are: Keynesian: relatively flat. Intermediate: upward sloping. Classical: relatively vertical.
Detailed explanation-2: -Aggregate supply curve showing the three ranges: Keynesian, Intermediate, and Classical. In the Classical range, the economy is producing at full employment.
Detailed explanation-3: -The Keynesian aggregate supply curve is non-linear where the elasticity of aggregate supply is dependent in part on the level of spare productive capacity at different stages of a nation’s economic cycle.
Detailed explanation-4: -The Keynesian long run aggregate supply curve (LRAS) has a bendy L-shape. It has three parts: spare capacity, bottleneck and full employment.