Economic theory assumes that the goal of firms is to maximize

The new classical explanation of aggregate supply is also known as

A) Monetarism. B) Keynesianism. C) the misperception theory. D) the adaptive expectations theory.

A sudden decrease in the market demand in a competitive industry leads to

a. A market equilibrium price higher than the original equilibrium in the short-run b. A market equilibrium price equal to the original equilibrium in the long-run c. Both a and b d. None of the above