According to new classical economists, the
A) short-run demand for labor curve is vertical.
B) short-run aggregate demand curve is vertical.
C) long-run aggregate supply curve is horizontal.
D) long-run aggregate supply curve is vertical.

Question

Quizplus · Accepted Answer

New classical economists believe that in the long run, the economy will always reach its potential output level and all factors of production, including labor, will be fully utilized, resulting in a vertical long-run aggregate supply curve.

According to New Classical Economists, the