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Keynesian Aggregate Supply (MCQ Revision Question)

AS, A-Level, IB
AQA, Edexcel, OCR, IB, Eduqas, WJEC

Last updated 9 Jun 2017

This question looks at the effects of an outward shift of aggregate demand using the Keynesian aggregate supply curve model.

Keynesian Aggregate Supply (MCQ Revision Question)

The perfectly elastic shape of the Keynesian AS curve shows the existence of excess capacity allowing real GDP to expand through increases in aggregate demand without there being inflation. 

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