classical

• What do classical economists believe about the economy's output?

  The economy returns to full potential output
• What changes in the long-run according to classical economists?

  Only the average price level changes
• What does the LRAS curve represent?

  The maximum possible output of an economy
• How does the SRAS curve interact with the AD curve?

  It intersects at the LRAS curve
• What does YFE stand for in economic terms?

  Full employment level of output
• What is the average price level at YFE?

  The average price level is AP1
• classical long run equilibrium