According to the keynesian model the short-run aggregate, Ask an Expert

Economics

according to the Keynesian model, the short-run aggregate supply curve is horizontal when:
A: there are unemployed resources and prices do not fall when aggregate demands falls.
B:prices react to an aggregate demand shock but real GDP does not.
or C: real GDP is at full capacity but prices are not flexible.

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Macroeconomics, Economics

Category:- Macroeconomics
Reference No.:- M9548327

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