According to classical economists, the short-run aggregate supply curve is _____, while according to Keynesian economists, the short-run aggregate supply curve is _____.
A) vertical; upward sloping
B) downward sloping; vertical
C) vertical; vertical
D) upward sloping; horizontal

Question

Quizplus · Accepted Answer

Classical economists believe that the short-run aggregate supply curve is vertical, indicating that the economy's output is not influenced by changes in the price level in the short run. Keynesian economists, on the other hand, argue that the short-run aggregate supply curve is upward sloping, suggesting that increases in demand can lead to increases in output without immediate increases in price levels.

According to Classical Economists, the Short-Run Aggregate Supply Curve Is