In the Keynesian view of macroeconomic equilibrium during a depression,aggregate demand and aggregate supply intersect

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In the Keynesian view, during a depression, the economy is likely to be operating with excess capacity or unemployment, which is represented by the horizontal segment of the aggregate supply curve. This implies that aggregate demand can increase without leading to immediate increases in prices, as firms can meet higher demand by utilizing underused resources.

In the Keynesian View of Macroeconomic Equilibrium During a Depression,aggregate