-Refer to the above figure. The classical aggregate supply curve is represented by ________ and the Keynesian short-run aggregate supply curve is represented by ________.
A) curve 2; curve 1
B) curve 2; curve 3
C) curve 3; curve 4
D) curve 2; curve 4

Question

-Refer to the above figure. The classical aggregate supply curve is represented by ________ and the Keynesian short-run aggregate supply curve is represented by ________.
A) curve 2; curve 1 
B) curve 2; curve 3 
C) curve 3; curve 4 
D) curve 2; curve 4

Quizplus · Accepted Answer

The classical aggregate supply curve is represented by curve 2, which is vertical, indicating that the total output is not influenced by the price level in the long run. The Keynesian short-run aggregate supply curve is represented by curve 4, which is horizontal at low levels of output, indicating that prices do not increase as demand increases when there is slack in the economy.

-Refer to the Above Figure