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The AD–AS or aggregate demand–aggregate supply model is a macroeconomic model that can increase without any additional costs (e.g. machines are idle which can simply be turned on). The long-run aggregate supply curve of the classical model is affected by events that affect the potential output of the economy.
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3 Jul 2019 In macroeconomics, classical economics assumes the long run aggregate supply curve is inelastic; therefore any deviation from full
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The classical model begins by looking at the (aggregate) supply in the economy, since the number of workers and the number of machines they have.
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AD–AS model - Wikipedia
The AD–AS or aggregate demand–aggregate supply model is a macroeconomic model that can increase without any additional costs (e.g. machines are idle which can simply be turned on). The long-run aggregate supply curve of the classical model is affected by events that affect the potential output of the economy.
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