In a market that is characterized by imperfect competition,
a. firms are price takers.
b. there are always a large number of firms.
c. there are at least a few firms that compete with one another.
d. the actions of one firm in the market never have any impact on the other firms' profits.
c
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When the nominal interest rate falls, there is
A) a leftward shift of the demand for money curve. B) a downward movement along the demand for money curve. C) no movement along the demand for money curve and the curve does not shift. D) a rightward shift of the demand for money curve. E) an upward movement along the demand for money curve.
Coal producers cannot profit by acting opportunistically toward U.S. Steel because:
a. there is a wide range of coal producers and substitution possibilities are high. b. coal is a highly specific resource and trades at competitive prices. c. the company usually enters into a delivery contract to obtain coal. d. the market for coal is thin.
In the long run, policy that changes aggregate demand changes
a. both unemployment and the price level. b. neither unemployment nor the price level. c. only unemployment. d. only the price level.
Suppose the government decides to increase taxes by $50 billion and to increase transfer payments by $50 billion. What effect would there be on aggregate demand?
A. $50 billion increase. B. More than $50 billion increase after the multiplier effect. C. $50 billion decrease. D. No impact.