Aggregate Demand and Aggregate Supply Analysis: Exploring the Keynesian AS Curve

The video explores the Keynesian aggregate supply (AS) curve, contrasting it with the classical approach. It explains the phases of the AS curve: elastic, intermediate, and inelastic, and their implications for economic policy. The video discusses how shifts in aggregate demand affect price levels and real output, emphasizing the importance of understanding spare capacity. It also covers the impact of investment on productivity and the sustainability of economic growth. The video concludes with a discussion on the implications for future economic policy.

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