If the aggregate supply curve is vertical, it follows that a change in
A) Real GDP can originate on the demand side of the economy.
B) Real GDP can originate on the supply side of the economy.
C) Real GDP can originate on either the demand side or the supply side of the economy.
D) price level can originate on the demand side of the economy.
E) b and d
E
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Some individuals choose to undertake risky prospects while others choose safer ones because they have different:
A. marginal utilities. B. degrees of transitivity. C. income elasticities. D. marginal rates of substitution between risk and reward.
The Five Forces Model determines whether an industry is an oligopoly.
Answer the following statement true (T) or false (F)
A group of firms that has entered into an agreement to restrict output and increase prices and profits is called
A) a compliance. B) a cartel. C) an oligopoly. D) a duopoly. E) a multi-firm monopoly.
If the government decreases the tax on cell phones, ________
A) the deadweight loss decreases B) the consumer surplus does not change because sellers will not lower the price of a cell phone C) the number of cell phones purchased does not change D) the market becomes less efficient because the government collects less tax revenue