How does affect output and price level in the keynesian case
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What relationship is captured by the aggregate supply curve? Can you provide an intuitive justification for it?
How does the Keynesian aggregate supply curve differ from the classical one? Is one of these specifications more appropriate than the other?
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What is supply-side economics? How would the reduction affect output and the price level in the short run?
How does this affect output and the price level in the Keynesian case? How does this affect output and the price level in the classical case?
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Explain how the aggregate supply and Phillips curves are related to each other. Can any information be derived from one that cannot be derived from the other?
How do short- and long-term Phillips curves differ? Hint: In the long run, we return to a classical world.
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