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How is Classical concept of AS different from Keynesian concept of AS?


According to Classical concept, aggregate supply curve is perfectly inelastic with respect to prices and AS is always at full employment level of output. According to Keynesian concept, aggregate supply curve is perfectly elastic with respect to prices until full employment level of output.
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What is aggregate demand (AD)?

What is aggregate supply (AS)?

Distinguish between inflationary gap and deflationary gap. Can deflationary gap exist at equilibrium level of income?

What is meant by equilibrium?

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