According to the classical model of the price level, the short-run aggregate supply curve is:
A) flat.
B) negatively sloped.
C) vertical.
D) unstable.

Question

Quizplus · Accepted Answer

The classical model of the price level suggests that the short-run aggregate supply curve is vertical, indicating that the quantity of goods and services supplied is not affected by the price level in the short run. This reflects the classical view that output is determined by factors such as technology and resources, not the price level.

According to the Classical Model of the Price Level, the Short-Run