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    I have been reading about Keynesian and classical economics and one of the topics that came up was the idea of a 'general glut' whether there is overall overproduction within an economy- i.e. more is produced by suppliers than is consumed. This was presented as the basis of Keynes' beliefs about a recession, and how the stimulating of demand is necessary to return the economy to full employment. I thought that I understood Keynesian economics and the idea that a lack of demand can cause the output of an economy to be below its productive potential, but surely there can be low aggregate demand, without there being excess supply- can't supply and demand both be at a level below the economy's productive potential, rather than there having to be overproduction?
 
 
 
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