Equilibrium in macroeconomics (neo-classical perspective)

IB Economics: Equilibrium in macroeconomics (neo-classical perspective)

Why using the monetarist / new classical model, is the long run aggregate supply curve (LRAS) vertical at the full employment output level.Lesson time: 70 minutesLesson objectives:Explain, using a diagram, that the monetarist / new classical model of the long run aggregate supply curve (LRAS) is vertical at the level of potential output (full employment output) because aggregate supply in the long run is independent...


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