4. The main difference between the classical model of the price level and Keynesian economics is that

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4. The main difference between the classical model of the price level and Keynesian economics is that

a. the classical model assumes a vertical short-run aggregate supply curve.

b. Keynesian economics assumes a vertical short-run aggregate supply curve.

c. the classical model assumes an upward sloping longrun aggregate supply curve.

d. Keynesian economics assumes a vertical long-run aggregate supply curve.

e. the classical model assumes aggregate demand can not change in the long run.

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Macroeconomics In Modules

ISBN: 978-1464139055

3rd Edition

Authors: Paul Krugman ,Robin Wells

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