Which of the following will occur if a natural monopoly is broken into two smaller firms?
a. The price will drop.
b. Industry output will increase.
c. Production costs will increase.
d. Industry output will decrease.
c
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If there is no Ricardo-Barro effect, a government budget surplus ________ the total supply of loanable funds and ________ the real interest rate
A) does not change; does not change B) increases; raises C) increases; lowers D) decreases; lowers E) decreases; raises
All changes in nominal GDP are due to price changes
a. True b. False Indicate whether the statement is true or false
If the aggregate supply curve is positively sloped, an increase in the money supply will result in an increase in both equilibrium national income and the equilibrium price level
a. True b. False Indicate whether the statement is true or false
Externalities are consequences visited upon those individuals residing outside decision processes
Indicate whether the statement is true or false