Cartels usually succumb to divisive forces caused by:
a. stringent enforcement of a cartel agreement
b. the similarity of production costs across member firms.
c. members cheating by giving secret discounts.
d. insufficient profits compared to independent operations.
c
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During the U.S. Great Moderation, ________
A) the volatility in the inflation rate declined by 50% B) the volatility in the rate of growth of real output declined by 33% C) the economy stabilized from the higher uncertainty of the 1970s D) all of the above E) none of the above
Which of the following is NOT a supply-side policy?
A. Decrease taxes B. Cut government spending C. Balance the budget D. Increase government spending in response to a deflationary gap
Anchoring is a type of ______ bias.
a. compartmentalizing b. endowment c. framing d. marginal utility
A Keynesian short-run aggregate supply curve has a flatter portion and a steep portion. How does a decrease in aggregate demand affect the actual real GDP differently across these two portions?
a. There is a large decrease in the actual real GDP across the flatter portion and a small decrease in the actual real GDP across the steep portion. b. There is a large increase in the actual real GDP across the flatter portion and a small increase in the actual real GDP across the steep portion. c. There is a small decrease in the actual real GDP across the flatter portion and a large increase in the actual real GDP across the steep portion. d. There is a small increase in the actual real GDP across the flatter portion and a large increase in the actual real GDP across the steep portion.