In the simple Keynesian model,the aggregate supply curve has a horizontal segment at levels of output below the level of natural Real GDP and a vertical segment at the level of natural Real GDP.

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In the simple Keynesian model, the aggregate supply curve is usually represented as a horizontal line at output levels below the natural Real GDP level, indicating that firms are willing to supply any quantity of goods at a fixed price level. Once the level of output reaches the natural Real GDP, the aggregate supply curve becomes vertical indicating that the economy has reached its full-employment level and firms are unable to supply beyond this level regardless of the price level.

In the Simple Keynesian Model,the Aggregate Supply Curve Has a Horizontal