The U.S. economy in the 1990s benefited from an aggregate supply curve shifting outward.
Answer the following statement true (T) or false (F)
True
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"Your college didn't choose to admit you as a student." Your textbook authors make such a statement in order to
A) offend you. B) confuse you. C) remind you that beggars can't be choosers. D) emphasize that choices are made by particular individuals, even if they are in the name of organizations.
A conglomerate occurs when:
a. the products of the merging firms were not related in any manner before the merger b. one firm is a producer of products, and the other firm is a producer of services c. one firm is a domestic firm, and the other is a foreign company d. the firms stood in a buyer-seller relationship before the merger e. the merger partners were competitors
Assume that full-employment national income is Y = $1,200 billion, the current equilibrium national income is Y = $800 billion, and the MPC is 0.5 . What level of aggregate expenditure will close the recessionary gap?
a. $50 billion b. $80 billion c. $140 billion d. $200 billion e. $400 billion
Which one of the following is NOT a retaliation strategy that firms would apply to one that cheated on a price-fixing scheme by selling at a price below the agreed-upon fixed price?
A. All other firms sell at the same low price as the cheating firm. B. All other firms sell at a price that ensures zero economic profit for all firms. C. Each period, all other firms sell at the price picked by the cheater in the previous period. D. All other firms would reduce their output.