Keynesian economists today favor a model in which the aggregate supply curve is relatively flat at low levels of real GDP and slopes downward as real GDP approaches its potential level.

Question

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Keynesian economists typically view the aggregate supply curve as relatively flat at low levels of real GDP, indicating that output can increase without causing much inflation. However, it slopes upward, not downward, as real GDP approaches its potential level, reflecting increasing inflationary pressures.

Keynesian Economists Today Favor a Model in Which the Aggregate