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A Vertical Aggregate Supply Curve Was Postulated by the Classical

Question 150

Multiple Choice

A vertical aggregate supply curve was postulated by the classical economists because they believed that


A) the economy almost always had a large quantity of unemployed resources.
B) the economy could come to equilibrium at any level of output,not necessarily that level required to fully employ society's resources.
C) the economy naturally tended toward that level of output which would fully employ all resources.
D) it would be possible to increase output without driving up prices by putting unemployed resources to work.

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