Practice mode Aggregate Supply, Unemployment And Inflation

The classical view of the labour market fits best with which shape of aggregate supply curve?

Correct answer C. A vertical (or almost vertical)

Explanation

If wages adjust quickly to keep the labour market at full employment, output stays at potential whatever the price level, giving a vertical aggregate supply curve.

Report a problem

Answer checked 11 October 2026 How we write and check questions

Tip: press A, B, C or D to answer, and N for the next question.

The classical view of the labour market fits best with which shape of aggregate supply curve?

Discussion

Have a question about this answer? Cancel reply

The classical view of the labour market fits best with which shape of aggregate supply curve?

More Aggregate Supply, Unemployment And Inflation questions

According to classical economists, people who are not working are in what position?

In the long run, the Phillips curve will be vertical at the natural rate of unemployment if which condition holds?

Potential GDP is the level of aggregate output that can be achieved in what way?

What relationship does the Phillips curve indicate?

Discussion

Have a question about this answer? Cancel reply