"A drop in the money supply lowered output in the short run, but left output unaffected in the long run." This statement implies that the price level __________ in the long run, causing the interest rate to __________

A Keynesian model is one in which prices are sticky:

a. in the short run only. b. in the short run and in the long run. c. in the long run only. d. so that they never depend on the money supply.

In the model of perfect competition,

A) all firms earn zero economic profit in the long run. B) all firms use the lowest-cost technologies. C) all firms take the prevailing market price as given. D) all participants fully exhaust any potential gains from trade. E) all of the above occur.