1.2 Classical economists assumed that wage rates, prices, and interest rates were flexible and would adjust quickly....

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1.2 Classical economists assumed that wage rates, prices, and interest rates were flexible and would adjust quickly. Consider an extreme case: Suppose classical economists believed wage rates, prices, and interest rates would adjust instantaneously. What would this imply the classical aggregate supply (AS) curve would look like? Explain your answer.

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Economics

ISBN: 978-0324538014

8th Edition

Authors: Roger A Arnold

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