Which one is the correct answer?
What is the best explanation for the slope of the Neoclassical zone of the aggregate supply curve?
a. A small increase in aggregate demand when the economy is operating below its potential output will not have much effect on the price level.
b. A small an increase in aggregate demand when the economy is operating at potential output causes the price level to rise, with little or no effect on real output.
c. An increase in aggregate demand causes both real output and the price level to increase.
Option B.
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