The Keynesian range is:
A) the vertical part of the AS curve.
B) the horizontal part of the AS curve.
C) the downward sloping part of the AS curve.
D) the upward sloping part of the AS curve.

Question

Quizplus · Accepted Answer

The Keynesian range refers to the horizontal part of the AS curve, which occurs when there is excess capacity in the economy and increases in aggregate demand do not lead to inflationary pressures. In this range, output can be increased without causing inflation, and therefore Keynesian economists advocate for government intervention to stimulate aggregate demand during economic downturns in order to move the economy towards full employment.

The Keynesian Range Is