What determines the success of a cartel?
What will be an ideal response?
There are two important considerations that determine how successful a collusive arrangement is: the detection and punishment of cheaters and the long-term value of the market in which the colluding firms operate.
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Under fiscal stabilization policy in the New Keynesian model, after a negative shock to output,
A) the government increases expenditures and the central bank increases the money supply. B) the government increases expenditures and the central bank decreases the money supply. C) the government decreases expenditures and the central bank increases the money supply. D) the government decreases expenditures and the central bank decreases the money supply.
Refer to the graph shown. No changes in fiscal policy are advisable when the economy is at point:
A. A. B. B. C. C. D. D.
When the unemployment rate is low, we would expect that
A) the probability of losing a job is high. B) the probability of losing a job is low. C) the probability an unemployed individual will find another job is low. D) the separation rate will increase.
The equation of exchange indicates that:
A. MQ equals VP B. The velocity of money and the supply of money vary proportionately with one another C. Other things being equal, an increase in V will increase P and/or Q D. Other things being equal, M and P are inversely related