The Classical Theory of Aggregate Supply Where Markets Are Perfectly

Multiple Choice

The classical theory of aggregate supply where markets are perfectly flexible

A) may or may not be compatible with the Keynesian system.
B) is easily added the IS-LM framework of aggregate demand.
C) is fundamentally incompatible with the Keynesian system.
D) is consistent with the IS-LM framework if all shocks are to the IS curve.
E) none of the above.