If the dollar falls in value compared to other currencies, what will happen in the United States?
A. A decrease in aggregate demand
B. An increase in aggregate supply
C. A decrease in aggregate supply
D. A decrease in the U.S. price level
Answer: C
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If the LM function is vertical, then __________ is constant
A) the price level B) the interest rate C) velocity D) investment
Firms faced with prisoners' dilemma can always make more profits by engaging in opportunistic behavior. Why is this type of behavior NOT commonly found even in oligopolistic markets?
What will be an ideal response?
You operate a small poultry farm in east Texas. You sell most of your output through a regional distributor of poultry products in the area. In this case, you are subject to
a. Low buyer power b. High buyer power c. No buyer power d. All of the above
A firm in a perfectly competitive market can increase total revenue by raising the price of its product
a. True b. False