keynesian

• What does the vertical portion of the LRAS curve represent?

  The classical view of LRAS
• What does the Keynesian view suggest about output?

  There is a maximum level of possible output
• When does the LRAS curve become elastic?

  At a certain price level where prices cannot fall further
• What factors can prevent wage decreases according to the study material?

  Minimum wage laws, trade unions, long-term contracts
• At what level can real output national equilibrium occur?

  At any level of output
• Where is equilibrium found in the context of LRAS and AD?

  At the intersection of LRAS and AD (AP1Y1)
• keynesian L.R equib diagram