The short-run aggregate supply curve is:
A) upward sloping in the classical range.
B) downward sloping in the Keynesian range.
C) vertical in the Keynesian range.
D) vertical in the classical range.

Question

Quizplus · Accepted Answer

In the classical range, the short-run aggregate supply curve is vertical because it is assumed that the economy is at full employment, and output is not affected by changes in the price level.

The Short-Run Aggregate Supply Curve Is