Say's statement that supply produces its own demand and Keynes' law that demand creates its own supply may both be shown using the AD-AS model.
Zones in the aggregate supply curve that are Keynesian, Neoclassical, and intermediate.
Small changes in AD, either to the right or to the left, will have a minimal impact on the production level Yk but have little impact on the price level as it is located close to the equilibrium Ek in the Keynesian zone at the extreme left of the SRAS curve.
The amount of output in the Keynesian zone is strongly influenced by AD. Small changes in AD, either to the right or to the left, will have comparatively little impact on the output level Yn close to the equilibrium En, in the neoclassical zone at the extreme right of the SRAS curve.
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