Classical economic theory describes agricultural economies fairly well because:

Question

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Classical economic theory assumes that the short-run aggregate supply curve in an economy is vertical, meaning that changes in demand only affect prices and not output. This assumption is particularly applicable to agricultural economies, where output is largely dependent on factors such as weather and natural resources, which cannot be adjusted in the short run. Therefore, changes in demand primarily affect agricultural prices rather than quantities produced.

Classical Economic Theory Describes Agricultural Economies Fairly Well Because