An increase in the overall level of prices in an economy is called

What is the profit maximizing price?

A) 10 B) 20 C) 3 D) 40 E) none of the above

Which of the following statements is TRUE about the long-run and short-run aggregate supply curve in the classical model?

A) The long-run aggregate supply curve is vertical, and the short-run curve is horizontal. B) The long-run aggregate supply curve is not defined, and the short run curve is vertical. C) The long-run and short-run curves start out horizontal and eventually become vertical. D) The long-run curve is vertical, and there is no short-run curve since all adjustments occur quickly.