The key defining feature of oligopoly, in addition to firms' market power, is
a. collusion.
b. free entry and exit.
c. firms take rivals' actions into account.
d. the Prisoner's Dilemma.
c. firms take rivals' actions into account.
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When plotted with the aggregate price level on the vertical axis and output on the horizontal axis, which of the following curves is vertical?
A) SRAS B) AD C) LRAS D) None of the above
An increase in the price level will
a. increase the equilibrium level of national income b. decrease the equilibrium level of national income c. increase aggregate expenditures d. increase aggregate demand e. have no effect on aggregate expenditure
Business cycles in the United States
A. Are similar in frequency and intensity. B. Are remarkably similar in length but vary greatly in intensity. C. Are similar in length, frequency, and intensity. D. Vary greatly in length, frequency, and intensity.
If taxes depend on income, then the magnitude of the government spending multiplier ________ it would be if taxes were a lump-sum amount.
A. is larger than B. is equal to what C. could be either larger than or smaller than D. is smaller than