The classical view of the labor market is basically consistent with the assumption of a vertical (or almost vertical) ________ curve.

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The classical view of the labor market assumes that wages are determined by the intersection of supply and demand for labor, which is represented by the aggregate supply (AS) curve. The AS curve is usually depicted as vertical or almost vertical in the classical model, illustrating the belief that the economy has a natural rate of unemployment that depends on structural factors rather than cyclical ones. Therefore, changes in aggregate demand (options B and C) or production possibility (option A) would not have a significant impact on wages or employment levels in the classical model.

The Classical View of the Labor Market Is Basically Consistent