According to classical theory, a shift in aggregate demand will affect
A) the price level only.
B) real Gross Domestic Product (GDP) only.
C) the level of employment only.
D) both real Gross Domestic Product (GDP) and the level of employment.
A
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If the real interest rate is greater than the nominal interest rate in an economy:
A) inflation must be negative in the economy. B) inflation must be positive in the economy. C) inflation must be zero in the economy. D) the nominal interest rate must be equal to zero.
The demand for curve for money
a. shows the amount of money people actually hold b. shows the amount of money people would like to hold, given the constraints they face c. shifts if the interest rate changes d. is independent of the price level e. changes whenever the Fed changes the money supply.
Suppose the market for bottled water is served by two oligopolists. If they reach an agreement to restrict production and charge a price above marginal cost, then:
A. neither firm will have an incentive to cheat on the agreement since it benefits them both. B. they will earn a larger profit than a monopolist would have earned. C. their agreement is likely to eventually collapse. D. they will charge a higher price than a monopolist would have charged.
The Clayton Act of 1914:
A. prohibited selling products at "unreasonably low prices" with the intent of reducing competition. B. outlawed tying contracts. C. outlawed asset-purchase contracts that would substantially reduce competition. D. made it illegal to monopolize a market.