LS6 - AD/AS Flashcards
1
Q
Long Run Equilibrium Classical
A
Where the LRAS & AD curve intersect. The LRAS curve shows the economy at full employment.
2
Q
Long Run Equilibrium Keynesian
A
Real output changes because Keynesian model believes unemployment of resources affect things. As people wait for the wages to be variable in the long-run the economy is suffering.
