If the AD curve shifts rightward less than expected,
What will be an ideal response?
the price level is lower than expected and output is below potential GDP.
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Refer to the diagram above, which represents a country's supply and demand for an internationally traded good
If PW is the world price, and a foreign country engages in dumping by selling at P1, the country's producer surplus will ________ by ________. A) increase; abcd B) decrease; abcd C) increase; bcd D) decrease; a
An oligopoly market structure is characterized by firms closely watching their rivals' pricing policies
a. True b. False Indicate whether the statement is true or false
The Fed can force the banking system to decrease the money supply by tightening monetary policy, but it cannot force the banking system to increase the money supply by loosening monetary policy
a. True b. False Indicate whether the statement is true or false
Other things equal, cartels and similar collusive arrangements are easier to establish and maintain:
A. when there are ample opportunities for the firms to make secret price concessions to selected buyers. B. during periods of business-cycle stability and full employment. C. when the demand and cost conditions of the participating firms differ substantially. D. when the number of firms is relatively large.