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In the Classical model, what is the shape of the

Q: Answer-In the Classical model, what is the shape of the Aggregate Supply (AS) curve in the long run, and wh...

In the Classical model, the long-run AS curve is vertical. This is because the Classical economists believe that output is determined by the supply of factors of production labor, capital, and technology and not by the price level. Prices and wages are flexible, and the economy is always at full employment. Therefore, changes in the price level do not affect the total output in the long run.

Aggregate Supply (AS) curve in the long run, and why?

A Upward sloping, because prices and wages are flexible.

B Vertical, because output is determined by factors of production.

C Downward sloping, because higher prices lead to higher demand

D Horizontal, because prices do not affect output.

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In the Classical model, what is the shape of the

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