Which one of the following statements regarding aggregate supply curves is correct?
Expansionary demand-side policies will always increase real national output when the economy is on the vertical section of the Keynesian long-run aggregate supply curve.
The classical long-run aggregate supply curve implies that any output gap will be automatically eliminated in the long run through price and wage flexibility.
The Keynesian long-run aggregate supply curve is perfectly inelastic at all levels of real national output.
The classical long-run aggregate supply curve suggests that long-run economic growth is determined solely by changes in aggregate demand.
31 exam-style questions on Edexcel A A Level Economics 2.3 Aggregate supply (AS), covering 2.3.1 The characteristics of AS, 2.3.2 Short-run AS, and 2.3.3 Long-run AS. Each one has a worked solution and a mark scheme showing where the marks go.