Classical Economists Believe That When the Aggregate Supply Curve Is

question 202

True/False

Classical economists believe that when the aggregate supply curve is horizontal, monetary policy and fiscal policy will have no effect on real output.

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Definitions:

Vertical Exaggeration

The method of representing the topographical relief on maps and diagrams by increasing the elevation scale relative to the horizontal scale.

Groundwater Divide

An area elevated between two groundwater basins, directing the flow of subsurface water in opposite directions.

Hydraulic Gradient

The slope or gradient of the water table.

Water Table

The upper level of an underground surface in which the soil or rocks are permanently saturated with water, marking the boundary between the unsaturated zone above and the saturated zone below.