Asked by
karara alkhafagi
on Oct 13, 2024
Verified
In the "classical" region of the aggregate supply curve,
A) because there are substantial amounts of unemployed resources,output can be increased without driving up prices.
B) the economy is at the maximum output level,so only the composition of output can be changed,the quantity of output cannot be increased.
C) the economy is on the production possibilities frontier.
D) attempts to expand output will result in increases in both prices and output.
E) the economy is at the maximum output level,so only the composition of output can be changed,the quantity of output cannot be increased AND the economy is on the production possibilities frontier.
Classical Region
In economic theory, a phase where the supply of labor is abundant and the wage rates are therefore determined by the cost of living, not by the demand for labor.
Aggregate Supply Curve
An economic curve illustrating the overall supply of goods and services by all businesses and the government at various overall price levels in a given period.
Maximum Output Level
refers to the highest amount of production a company can achieve with the current resources and technology.
- Elucidate on the collective supply and demand evaluations within Keynesian and classical frameworks.
- Gain insight into the function of price levels within the economy and their consequences on aggregate supply.
Verified Answer
BP
Learning Objectives
- Elucidate on the collective supply and demand evaluations within Keynesian and classical frameworks.
- Gain insight into the function of price levels within the economy and their consequences on aggregate supply.