Explain why the classical supply curve is vertical

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Reference no: EM131001252

a. Explain why the classical supply curve is vertical.

b. What are the mechanisms that ensure continued full employment of labor in the classical case?

c. How does the Keynesian aggregate supply curve differ from the classical one?

d. Is one of these specifications more appropriate than the other?

e. The aggregate supply and demand model looks, and sounds, very similar to the standard supply and demand model of microeconomics. How, if at all, are these models related?

Reference no: EM131001252

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