CLASSICAL AGGREGATE SUPPLY CURVE: A graphical representation of the classical economic view of the relation between real production and the price level, holding all ceteris paribus aggregate supply determinants constant. The classical aggregate supply curve is a vertical line that reflects the classical view that the macroeconomy has flexible prices and maintains full employment. This aggregate supply is essentially the long-run aggregate supply curve used in modern aggregate market analysis. It should be compared with the Keynesian aggregate supply curve. See also | classical economics | aggregate supply | long-run aggregate supply | Keynesian aggregate supply curve | aggregate market | flexible prices | full employment | Say's law | price level | real production | short-run aggregate supply | Keynesian economics |
