If the economy is at point 1 in Figure 13.1 and there is no policy intervention, what happens next?
A) the economy moves to point 2
B) the economy remains at point 1
C) the economy moves to the left along the AS curve
D) the AS curve shifts down, causing both output and inflation to decline
E) the AS curve shifts up, causing both output and inflation to rise
D
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A game in which one player's winnings equal the other player's losings is called a
A) tit-for-tat game. B) all-or-nothing game. C) fair-and-balanced game. D) zero-sum game.
If rational workers and firms know that the Federal Reserve is following a contractionary monetary policy, they will expect inflation to ________ and will adjust wages so that the real wage ________
A) increase; decreases B) decrease; increases C) increase; remains unchanged D) decrease; remains unchanged
Perfect price discrimination is the same thing as predatory pricing
Indicate whether the statement is true or false
Antitrust laws give the Justice Department the authority to challenge potential mergers between companies in an effort to safeguard society from monopoly power
a. True b. False Indicate whether the statement is true or false