A perfectly inelastic supply curve is also called an infinitely elastic supply curve

New Keynesian inflation dynamics predicts that an increase in aggregate demand will generate, in chronological order

A) a rightward movement along a horizontal short-run aggregate supply curve, a short-run increase in real GDP, an upward shift in the short-run aggregate supply curve, and an increase in the price level. B) a leftward movement along a horizontal short-run aggregate supply curve, a short-run decline in real GDP, a downward shift in the short-run aggregate supply curve, and a decrease in the price level. C) an leftward shift in a vertical short-run aggregate supply curve, a short-run decline in real GDP, an upward movement along the short-run aggregate supply curve, and an increase in the price level. D) a rightward shift in a vertical short-run aggregate supply curve, a short-run increase in real GDP, an upward movement along the short-run aggregate supply curve, and an increase in the price level.

Consider a market that has linear supply and demand curves, and is in equilibrium. The area above the price line and below the demand curve is

A) consumer surplus. B) producer surplus. C) marginal cost. D) marginal benefit.