A student​ remarks: ​"If firms in a monopolistically competitive industry are earning economic​ profits, new firms will enter the industry.​ Eventually, the representative firm will find its demand curve has shifted to the​ left, until it is just tangent to its average cost curve and it is earning zero profit. Because firms are earning zero profit at that​ point, some firms will leave the​ industry, and the representative firm will find its demand curve will shift to the right. In​ long-run equilibrium, price will be above average total cost by just enough so that each firm is just breaking​ even." Is the analysis correct or​ incorrect?

Answer the questions about keynesian theory, market economics, and government policy. keynes believed that there were "sticky" wages and that recessions are caused by increases in prices. decreases in supply. decreases in aggregate demand (ad). increases in unemployment. keynes believed the government should increase ad through increased government spending, but not tax cuts. control wages to increase employment because of sticky wages. increase employment through tax cuts only. increase as through tax cuts. increase ad through either increased government spending or tax cuts. intervene when individual markets fail by controlling prices and production.