An eclectic aggregate supply curve:

Question

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An eclectic aggregate supply curve combines elements of the monetarist and Keynesian assumptions about the shape of aggregate supply. It suggests that in the short run, the aggregate supply curve may be upward sloping, but in the long run, it becomes more elastic and may even be horizontal. It incorporates both the idea that changes in the money supply can have short-run effects on the price level (as suggested by monetarism), and that there may be sticky wages and prices that cause shifts in aggregate demand to affect output and employment in the short run (as suggested by Keynesianism).

An Eclectic Aggregate Supply Curve