Introduction to Economics 2 Deneme Sınavı Sorusu #755330

Cassical economists argue that the short-run supply curve is completely vertical or rather steep. What could be the reason for that?


Intense entry barriers to industries

Firms’ low product range

Government’s expanded monetary policy

The economy is always at full of employment

Highly concentrated markets


Yanıt Açıklaması:

There are different approaches among economists regarding the shape of the short-run aggregate supply curve, in other words, the slope of the short-run aggregate supply curve. Classical economists argue that the short-run supply curve is completely vertical or rather steep because the economy is always at full of employment as a result of dynamics of the market mechanism.

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