The Keynesian short-run aggregate supply curve in the simplified Keynesian model is unrealistic because
A) a vertical curve does not make economic sense.
B) prices and wages will never decrease.
C) the classical model is better in explaining how the economy operates.
D) some price adjustments do take place in the short run.
Question 2
In the above figure, the profit-maximizing output and price for this monopolistically competitive firm are
A) 10,000 units at a price of 10 per unit.
B) 10,000 units at a price of 5 per unit.
C) 13,000 units at a price of 7 per unit.
D) 12,000 units at a price of 8 per unit.
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