The Keynesian aggregate supply curve moves up if output is below its potential.

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The Keynesian aggregate supply curve represents how the total production (output) of an economy responds to changes in the price level in the short run. It is typically depicted as horizontal at low levels of output, indicating that prices do not increase as demand increases when there is slack in the economy (i.e., when output is below its potential). The curve does not move up or down based on the level of output; instead, it may shift due to factors affecting potential output or the economy's capacity to produce, such as technology or resources. The movement described would more accurately apply to the aggregate demand curve or to shifts in the aggregate supply curve due to other factors, not the level of output relative to potential.

The Keynesian Aggregate Supply Curve Moves Up If Output Is