What is the focus of the Keynesian-neoclassical controversy?
A)The shape of the AD curve.
B)The shape of the LAS curve.
C)The position of the AD curve.
D)The shape of the AS curve.

Question

Quizplus · Accepted Answer

The Keynesian-neoclassical controversy is primarily focused on the shape of the AS curve, specifically whether it is horizontal or upward-sloping in the short run. Keynesians believe that the AS curve is generally flat in the short run due to sticky wages and prices, while neoclassicals argue that the AS curve is upward-sloping due to the ability of firms to adjust their prices and production levels in response to changes in demand.

What Is the Focus of the Keynesian-Neoclassical Controversy