In the Keynesian Model

Multiple Choice

In the Keynesian model,

A) the short-run aggregate supply slopes upward because of price misperception by firms.
B) the short-run aggregate supply slopes upward because the actual price may be different from the expected price during the term of wage contract.
C) the short-run aggregate supply is horizontal because of price misperception by firms.
D) the short-run aggregate supply is horizontal because the actual price may be different from the expected price during the term of wage contract.