Decreasing government spending ________ the price level and ________ equilibrium real GDP
A) increases; increases B) decreases; increases
C) increases; decreases D) decreases; decreases
D
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Assume that the reserve ratio is 20% and banks in the system are loaning out all their excess reserve. If people collectively cash out $10 billion from their checking accounts, then the lending ability of the banking system will be
A. increased by $10 billion. B. decreased by $40 billion. C. decreased by $50 billion. D. decreased by $10 billion.
Martha's Cleaning Services is a perfectly competitive firm that currently cleans 30 offices a week and charges $20 per office, which is the going market price. Martha's marginal cost is $15
What should Martha do to increase her economic profit? Clean more offices? Raise her price? Explain your answer.
The largest migration pattern in China at present is from urban centers to more rural areas to escape traffic and pollution
Indicate whether the statement is true or false
A cartel is defined to be
A) any oligopolistic industry with fewer than 4 firms. B) a form of oligopoly in which firms agree to sell at different prices like in monopolistic competition. C) a form of oligopoly in which firms formally agree to establish a common strategy, often a common price, in effect acting like a monopoly. D) a form of oligopoly in which firms agree to compete with each other on an equal basis.