Once the full-employment level of aggregate supply has been reached, further expansions of the aggregate demand curve will cause deflation to occur in the economy
Indicate whether the statement is true or false
F
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How do fluctuations in autonomous expenditure influence real GDP?
What will be an ideal response?
Refer to the table below for an oligopolist’s dilemma. Gillette and Schick are two companies competing in the same oligopoly market. The profit payoff for Gillette is shown in the upper corner of each box, and the profit payoff for Schick is shown in the lower corner of each box. If they cooperate and undertake price collusion the most likely price charged by each firm will be
a. $8 charged by both companies.
b. $6 charged by both companies.
c. $8 charged by Gillette and $6 charged by Schick.
d. $8 charged by Schick and $6 charged by Gillette .
The term transfer payments refers to
A. Federal income taxes. B. Money that is transferred between savings and checking accounts. C. Additional profits transferred to monopolies as a result of their market power. D. Payments to individuals that are not in exchange for current goods and services being produced.
GDP provides an indication of:
A. how much of a country's debt is external rather than internal. B. how big a national debt a country can handle. C. how much interest will have to be paid on the national debt. D. the inflation-adjusted burden of a country's debt.