According to New Classical School of Economics, the Aggregate Supply

question 79

Multiple Choice

According to new classical school of economics, the aggregate supply curve is:

• A)horizontal in both the short run and the long run.
• B)vertical in the short run and upward-sloping in the long run.
• C)upward-sloping in both the short run and the long run.
• D)vertical in both the short run and the long run.
• E)upward-sloping in the short run and vertical in the long run.

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Definitions:

Mean Absolute Deviation

The average of the absolute differences between each data value and the mean of the data set, measuring variability.

Forecast Error

The difference between the actual value and its forecasted value in a time series analysis.

Sum of Squares

The total squared difference between each observation and the mean of the data set, used in statistical analysis to measure variation.

Mean Absolute Deviation

A measure of variability that shows the average distance between each data point and the mean of the dataset.