In the classical model, the aggregate supply curve is
A) upward sloping in the short run but vertical in the long run.
B) always vertical.
C) the same as the aggregate supply curve in the Keynesian model.
D) flat at low levels of output and then eventually slopes upward as output increases.

Question

Quizplus · Accepted Answer

In the classical model, the aggregate supply curve is always vertical, reflecting the idea that the total output of an economy is determined by its productive resources (like labor, capital, and technology) and is not influenced by the price level in the long run.

In the Classical Model, the Aggregate Supply Curve Is