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\subsection{Aggregate Supply (AS)}

\subsubsection{Aggregate Supply in neoclassical models}

In neoclassical models Aggregate Supply does not depend on price.

\subsubsection{Aggregate Supply in neo-Keynesian models}

The Aggregate Supply curve is informed by the Phillips curve.

As prices rise, so too does output.

Firms could increase production as nominal prices rise, as nominal contracts on wages mean that real costs have fallen.

\subsubsection{Slope of the Aggregate Supply curve}

