During certain periods in the past few decades, if one of the three major breakfast cereal producers in the United States announced a price increase, the other two announced a similar price increase. This is a good example of
a. monopolistic competition
b. a cartel
c. a pure monopoly
d. the kinked demand curve model of oligopoly
e. the price leadership model of oligopoly
E
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Two policies to combat discrimination are affirmative action and right-to-work laws
a. True b. False Indicate whether the statement is true or false
When there is an expansionary gap, inflation will ________, in response to which the Federal Reserve will ________ real interest rates, and output will ________.
A. decline; lower; expand B. increase; raise; decline C. decline; lower; decline D. decline; raise; decline
If the price level increases, we would expect consumers to
A. raise their consumption functions. B. move downward along their consumption functions. C. lower their consumption functions. D. move upward along their consumption functions.
If net foreign factor income is zero and there are no statistical discrepancies, the sum of national income and the consumption of fixed capital equals:
A. disposable income. B. personal income. C. net domestic product. D. gross domestic product.