A Vertical Aggregate Supply Curve Was Postulated by the Classical

question 223

Multiple Choice

A vertical aggregate supply curve was postulated by the classical economists because they believed that

• A)the economy almost always had a large quantity of unemployed resources.
• B)the economy could come to equilibrium at any level of output,not necessarily that level required to fully employ society's resources.
• C)the economy naturally tended toward that level of output which would fully employ all resources.
• D)it would be possible to increase output without driving up prices by putting unemployed resources to work.

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Definitions:

Ultimate Source

The primary origin from which something derives or is obtained.

Organisms

Any living individual entity that can carry out life processes such as growth, reproduction, and metabolism.

Sunlight

The natural light emitted by the sun, providing the energy necessary for photosynthesis in plants and influencing various biological processes in living organisms.

Food Web

In ecosystems, a complex pattern of interlocking and crisscrossing food chains.