In the simple Keynesian model, equilibrium occurs when there are no net pressures pushing the economy to move to a higher or lower level of income and output.

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In the simple Keynesian model, equilibrium is achieved when aggregate demand (AD) equals aggregate supply (AS), meaning there are no net pressures pushing the economy to move to a higher or lower level of income and output.

In the Simple Keynesian Model, Equilibrium Occurs When There Are