What is the neoclassical zone of the SRAS curve? How much is the output level likely to
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What is the neoclassical zone of the SRAS curve? How much is the output level likely to change in the neoclassical zone?
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The neoclassical zone of the ShortRun Aggregate Supply SRAS curve represents a range of output levels in the short run where prices and wages are flexible and the economy operates near its potential or natural level of output In this zone changes in aggregate demand primarily impact the price level rather than the level of real output In the neoclassical zone if aggregate demand increases it will typically lead to an increase in the price level with a relatively small change in the output level ...View the full answer
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