The diagram above shows two aggregate supply curves, AS1 and AS2. Which of the following statements most accurately characterizes the AS1 curve relative to the AS2 curve?
(A) AS1 is Keynesian because it reflects greater wage and price flexibility.
(B) AS1 is classical because it reflects greater wage and price flexibility.
(C) AS1 is Keynesian because it reflects less wage and price flexibility.
(D) AS1 is classical because it reflects less wage and price flexibility.
(E) AS1 could be either classical or Keynesian because it reflects greater
Answer: C
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