To illustrate the classical argument that "supply creates its own demand," the aggregate supply curve should be drawn:
A) downward-sloping.
B) upward-sloping.
C) horizontal.
D) vertical.

Question

Quizplus · Accepted Answer

The classical argument that "supply creates its own demand" is illustrated by a vertical aggregate supply curve, indicating that the total amount of goods and services produced (supply) is independent of the price level, hence the economy is always at full employment.

To Illustrate the Classical Argument That "Supply Creates Its Own