Classical macroeconomic theorists believed that during an economic downturn, wages would ________, which in turn would lead prices to ________.
A. rise; fall
B. fall; fall
C. rise; rise
D. fall; rise
Answer: B
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Use the following graph for a private closed economy (an economy with only a private sector and no international trade) to answer the next question. 
In this economy, investment is
A. $50 billion. B. $150 billion. C. $100 billion. D. $200 billion.
An increase in U.S. prices relative to Japanese prices will
A) decrease both U.S. exports and imports. B) increase total planned spending on U.S. goods and services. C) increase U.S. imports and decrease U.S. exports. D) decrease U.S. imports and increase U.S. exports.
The outcome of a colluding oligopoly:
A. is more efficient than that of a monopolist. B. is the same as that of a monopolist. C. is less efficient than that of a monopolist. D. is more efficient than that of a competitive oligopoly.
A natural monopoly is characterized by the fact that its average costs increase rather than decrease when its output expands
a. True b. False Indicate whether the statement is true or false