In the classical model, the aggregate supply curve is
A) a horizontal line.
B) an upward sloping line.
C) a vertical line.
D) a combination of horizontal, upward sloping, and vertical lines.

Question

Quizplus · Accepted Answer

In the classical model, the aggregate supply curve is vertical, indicating that the total output of goods and services is determined by factors of production and is not influenced by the price level in the long run.

In the Classical Model, the Aggregate Supply Curve Is