An increase in the amount of a product offered for sale at every price is called an increase in supply
Indicate whether the statement is true or false
TRUE
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Starting from long-run equilibrium, a large decrease in government purchases will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. expansionary; lower; potential B. expansionary; higher; potential C. recessionary; lower; potential D. recessionary; lower; lower
Why does the production possibilities frontier have a bowed out shape rather than being a straight line?
What will be an ideal response?
Which of the following is characteristic of a downturn in the business cycle?
A. Higher unemployment rates B. Higher prices C. Growth in real output D. Increased population
Glintz and Meck are two oligopolistic firms that agree to align their pricing strategies for the coming year. However, Glintz suspects that Meck will not honor the agreement. What can Glintz do to minimize its potential loss in this situation?
a. Form a cartel with Meck to ensure that collusion succeeds. b. Defect from the agreement first by lowering its prices. c. Convince other competitors to join the collusive oligopoly. d. Defect from the agreement first by raising its prices.