Multiple Choice
According to neoclassical economists,what is true of the aggregate supply curve?
A) It is vertical because prices tend to be inflexible.
B) It is horizontal because prices tend to be fixed.
C) It is vertical at the capacity level of output in the economy.
D) It is upward-sloping since higher outputs will only be produced at higher price levels.
E) It is horizontal because supply creates its own demand.
Correct Answer:
Verified
Correct Answer:
Verified
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