If oligopolistic firms successfully cooperate with each other, _____
a. they may act like a monopoly and increase their prices
b. they may act like a monopoly and increase their output
c. they may act like perfectly competitive firms and earn normal profits
d. they may act like a monopolistic firm and earn economic profits
a
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A policy of maintaining a fixed interest rate will have the greatest stabilizing effect on output when money demand is
A) stable. B) unstable and commodity demand is unstable. C) stable and commodity demand is unstable. D) unstable and commodity demand is stable.
If resource prices are "sticky" downward and a recessionary gap develops in an economy, the short-run aggregate supply curve will _____
Fill in the blank(s) with the appropriate word(s).
Which of the following is true about U.S. history prior to the 1950s?
a. The inflation rate remained constant during this period b. Cost-push inflation led to depressions, which were followed by slowly-rising price levels. c. The price level remained constant during this period. d. Major wars resulted in high inflation rates, after which the inflation rate tapered off. e. Major wars resulted in high inflation rates that were usually followed by deflation.
Which of the following is true of a change in nonlabor income?
A. There is no income effect because a change in nonlabor income does not change a household's permanent income. B. There is no substitution effect because a change in nonlabor income does not change a household's permanent income. C. There is no income effect because a change in nonlabor income does not change the trade-off between work and leisure. D. There is no substitution effect because a change in nonlabor income does not change the trade-off between work and leisure.