The discount rate serves as a ceiling on interbank reserve loans

Firms in monopolistic competition would

A) persistently realize economic profits in both the short and long run. B) may realize economic profits in the long run and normal profits in the short run. C) tend to incur persistent losses in both the short and long run. D) tend to realize economic profits in the short run and normal profits in the long run.

A supply shock

a. is usually caused by a change in the money supply b. is any event that causes the aggregate supply curve to shift c. is any event caused by a change in the price level d. is usually good news for the economy e. always leads to an increase in the interest rate