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AMEX: The common abbreviation for the American Stock Exchange, which is one of three national stock markets in the United States (see National Association of Securities Dealers and New York Stock Exchange) that trade ownership shares in corporations. In terms of daily stock transactions and the number of stocks listed, the American Stock Exchange is the smallest of these three. However, it's composite index of stock prices -- AMEX is considered important enough to be flashed briefly on the nightly news.
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                           KEYNESIAN AGGREGATE SUPPLY CURVE: An aggregate supply curve--a graphical representation of the relation between real production and the price level--that reflects the basic principles of Keynesian economics. The Keynesian aggregate supply curve actually comes in two versions. The basic version is reverse-L shaped, with a horizontal segment connected to a vertical segment at a sharp corner. The modified version is also reverse-L shaped, but the vertical and horizontal segments have positive slopes and connecting corner is rounded. An alternative is the classical aggregate supply curve. An aggregate supply curve is a graphical representation of the relation between real production and the price level. Keynesian economics implies that the aggregate supply curve contains two segments. One segment is more or less horizontal, indicating that price rigidity in the downward direction results in a reduction in real production. The other segment is more of less vertical, indicating that full employment is more or less maintained at higher price levels.| Keynesian AS Curve | 
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The exhibit to the right illustrates a basic Keynesian aggregate supply (AS) curve. The obvious characteristic is that the curve is shaped like a reserve L, with a horizontal segment joining a vertical segment at a sharp corner. The horizontal segment of the curve reflects the Keynesian notion that a decline in demand leads to a decline in real production, primarily because prices remain constant. The vertical segment is a recognition that the total quantities of resources are fixed and that total production is ultimately limited, which results in full employment.While this reverse-L shaped curve captures the original essence of Keynesian economics, the Keynesian view has changed over the years. A more refined version of the Keynesian aggregate supply curve can be illustrated by clicking the [New Keynesian AS Curve] button. This new curve retains the same basic reverse-L shape, but the horizontal segment has a slight, positive slope rather than being perfectly horizontal and the vertical segment has a steep, positive slope rather than being perfectly vertical. Moreover, the vertical and horizontal segments are joined by a curved segment rather than a sharp corner. This version of the Keynesian aggregate supply curve is both more realistic and looks a great deal like the short-run aggregate supply curve used in modern aggregate market analysis.
Recommended Citation:KEYNESIAN AGGREGATE SUPPLY CURVE, AmosWEB Encyclonomic WEB*pedia, http://www.AmosWEB.com, AmosWEB LLC, 2000-2024. [Accessed: October 22, 2024].
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North Carolina supplied all the domestic gold coined for currency by the U.S. Mint in Philadelphia until 1828.
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"When we do the best we can, we never know what miracle is wrought in our life or in the life of another. " -- Helen Keller, lecturer, author
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LRTC
Long Run Total Cost
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