The dominant firm in an oligopoly changes its prices, and then its competitors do likewise. This is an example of ______.
a. price leadership
b. tying
c. price discrimination
d. merging
a. price leadership
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A variable that is potentially affected by an experimental treatment is referred to as a(n):
A) compulsory variable. B) omitted variable. C) independent variable. D) dependent variable.
The inflation rate that is used to set the money wage rate and other money prices is the
A) actual inflation rate. B) cost of living inflation rate. C) natural inflation rate. D) expected inflation rate. E) wage inflation rate.
Suppose the U.S. dollar depreciates, and there is no change in monetary policy. Which of the following is a correct description of the short-run consequences?
A) output, inflation, and the real interest rate have all increased B) output, inflation, and the real interest rate have returned to their original values C) output and inflation are higher, while the real interest rate has fallen D) output and inflation have returned to their original values, while the real interest rate is increased
If the shifts in AD that will result from policy changes are fully and accurately anticipated, an increase in government purchases or a decrease in taxes would result in which of the following in the short run?
a. a higher level of real output and a higher price level b. a higher level of real output but no change in the price level c. a higher price level and a reduced level of real output d. a higher price level but no change in real output