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Determination of Income and Employment
Question
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How is Classical concept of AS different from Keynesian concept of AS?

Answer

According to Classical concept, aggregate supply curve is perfectly inelastic with respect to prices and AS is always at full employment level of output. According to Keynesian concept, aggregate supply curve is perfectly elastic with respect to prices until full employment level of output.

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Some More Questions From Determination of Income and Employment Chapter

Calculate consumption level for Y = र 1000 crores if consumption function is C = 300 + 0.5Y.

State relationship between income and consumption.

What is Breakeven point?

What are the types of Propensity to consume?

How does MPC affect level of income?