How does the original, simplified Keynesian model compare with modern Keynesian analysis?
A. In both cases, the short-run aggregate supply curve (SRAS) is horizontal.
B. The original Keynesian model assumed price flexibility whereas the modern analysis does not.
C. Modern analysis shows an upward sloping SRAS to reflect some price flexibility. The original Keynesian model's SRAS is horizontal and assumes sticky prices.
D. all of these
Answer: C
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