Skip to content
We use only essential cookies to keep you signed in and remember your preferences. See our Cookie Policy.
TestStop
MocksPracticeResourcesIndiaBlogPricing
Sign in
Questions › IIT JAM › IIT JAM 2025 › Q36
2 marksMacroeconomics › AD-AS model › Classical aggregate supplyHardabout 3 min

IIT JAM 2025 Question 36: AD-AS model

Which of the following is/are CORRECT according to the classical macroeconomic school?

(A) Long run aggregate supply curve is vertical.

(B) If long run aggregate supply curve is vertical, changes in aggregate demand affects prices but not output.

(C) If long run aggregate supply curve is vertical, changes in aggregate demand affects output but not prices.

(D) Vertical aggregate supply curve implies that output is independent of the money supply.

Select all that apply.

Answer and worked solution

Checking your account…

AD-AS model has come up 59 times in 7 exams since 2004.

What this question tests

This question is on Classical aggregate supply, part of AD-AS model in Macroeconomics.

A vertical long-run supply curve set by labour market equilibrium.

TestStop has 8 past-paper questions on this subtopic.

Take this paper as a timed mockMore on Classical aggregate supply

Similar questions from other papers

  • CUET-PG 2026 · Q9In the short run, if planned purchase exceeds production
  • CUET-PG 2025 · Q10In the case of classical economics, an increase in the nominal money stock causes
  • GATE 2024 · Q29In the sticky-price model of aggregate supply, if none of the firms in the market have flexible prices, then the short-run aggregate supply curve will be
  • UGC-NET 2024 · Q76Effective Demand Problem may arise even in a competitive market economy under Rational Expectation, if there is:
  • GATE 2023 · Q54Which of the following models explain(s) the upward-sloping aggregate supply curve in the short-run?

Question from the IIT JAM 2025 paper. Solutions are TestStop's own. Not affiliated with or endorsed by any examination authority.