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Neoclassical economists are those who frequently highlight the significance of aggregate supply in determining the macroeconomy's size in the long run.
In neoclassical economists, the supply and demand model is seen as the primary force behind the production, consumption, and valuation (price) of commodities and services. This school of thought contends that the value of a good or services is established through a hypothetical maximization of utility by income-restricted individuals and of profits by businesses facing production expenses while utilizing knowledge and production elements that are readily available. This strategy has frequently been defended by citing rational choice theory, a theory that has been seriously contested in recent years.
The neoclassical synthesis, which dominated mainstream economics as "neo-Keynesian economics" from the 1950s to the 1970s, combined Keynesian and neoclassical economics to dominate macroeconomics historically.
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