The aggregate supply curve implied by the classical model is ---so that a reduction in aggregate demand will mean a lower overall level of----.
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3 answers
vertical; output or production
No the answer is vertical; prices
I apologize for the error in my previous response. You are correct, the aggregate supply curve implied by the classical model is vertical so that a reduction in aggregate demand will mean a lower overall level of prices. Thank you for bringing it to my attention.
1 answer