The aggregate supply curve
A)slopes upward to the right in both the short run and long run according to both the monetarist and Keynesian models.
B)slopes upward to the right in the short run and approaches the vertical classical formulation only in the long run,according to the monetarists and Keynesians.
C)is vertical in both the monetarist and Keynesian models.
D)None of the above

Question

Quizplus · Accepted Answer

The aggregate supply curve slopes upward to the right in the short run due to price stickiness, but in the long run, it becomes more elastic and approaches the classical formulation where it is perfectly vertical. Both monetarists and Keynesians agree on this general shape of the aggregate supply curve.

The Aggregate Supply Curve