In the Cournot model, if one firm increases its output
A) the market will not clear because now there is a surplus.
B) the market price drops, reducing the revenues received by the other firms.
C) the others will kick it out of the oligopoly.
D) the other firms are unaffected.
B
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Based on the figure below. Starting from long-run equilibrium at point C, a tax increase that decreases aggregate demand from AD1 to AD will lead to a short-run equilibrium at point ________ and eventually to a long-run equilibrium at point ________, if left to self-correcting tendencies.
A. D; C B. D; B C. A; B D. B; C
Refer to the table above. If imports falls to $45,000 in the next year, ________, all other variables remaining unchanged
A) gross domestic product will fall by $5,000 B) gross domestic product will fall by $ 10,000 C) gross domestic product will increase by $5,000 D) gross domestic product will increase by $ 10,000
The Wilshire 5000 stock index is made up of the stocks of 5,000 of the largest U.S. companies.
Answer the following statement true (T) or false (F)
Central banks can increase the money supply by:
a. Increasing the discount rate. b. Buying government securities. c. Selling foreign exchange. d. All of the above. e. None of the above.