A monopolistically competitive firm faces a relatively steeper demand curve than that of a perfectly competitive firm

The figure above shows a monopoly firm's demand curve. At point t

A) demand is elastic. B) demand is unit elastic. C) demand is inelastic. D) total revenue is at a minimum.

Before the financial crisis of 2007, inflation was on the rise. According to the MP curve, this would lead to ________

A) an increase in the real interest rate B) an upward shift of the MP curve, if policymakers opted for autonomous tightening C) a decrease in aggregate output D) all of the above E) none of the above