Collusion is more likely to occur when
A) there is fear of punishment for not colluding.
B) there is a known finite time horizon.
C) there are large gains to be made by cheating on an agreement.
D) the game lasts only one period.
A
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Which of the following is CORRECT? The demand for money
A) increases as real GDP increases. B) decreases as the price level increases. C) depends on the quantity of money. D) increases when the nominal interest rate rises.
In the above figure, the difference between the competitive industry price and that of the monopolist is
A) 0B. B) 0A. C) AB. D) CE.
If the productivity of capital increases, the
a. supply curve of capital shifts to the right b. interest rate decreases c. firm's MRP of capital increases d. firm's MRP of capital decreases e. marginal factor cost decreases
Using Figure 3 above the distance between what 2 lines illustrate an inflationary expenditure gap?
A. PAE2 to PAE3 B. Y2 to Y3 C. PAE1 to PAE2 D. Y1 to Y2