Aggregate supply - Wikipedia
Aggregate supply curve showing the three ranges: Keynesian, Intermediate, and Classical. In the Classical range, the economy is producing at full employment. In economics , aggregate supply ( AS ) or domestic final supply ( DFS ) is the total supply of goods and services that firms in a national economy plan on selling during a specific time,Solved: 1. In The Classical Model, It Is Thought That The,,The classical economists emphasized the short-run effects of shifts in aggregate demand on aggregate output, whereas Keynes focused on the long-run determination of the aggregate price level. E. Keynes saw no role for the government in affecting the business cycle.Reading: The Neoclassical Perspective and Aggregate Demand,,In the aggregate demand/aggregate supply model, potential GDP is shown as a vertical line. Neoclassical economists who focus on potential GDP as the primary determinant of real GDP argue that the long-run aggregate supply curve is located at potential GDP—that is, the long-run aggregate supply curve is a vertical line drawn at the level of potential GDP, as shown in Figure.