Which of the following is eliminated when the economy's output is equal to full-employment GDP?
A. The MPC.
B. The multiplier.
C. Leakages and injections.
D. The real GDP gap.
Answer: D
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All of the following are reasons for an oligopoly to occur EXCEPT
A) economies to scale. B) barriers to entry. C) independence among firms. D) merger.
Expansionary monetary policy would shift the
A. aggregate supply curve up and to the left. B. aggregate demand curve to the right. C. aggregate supply curve down and to the right. D. aggregate demand curve to the left.
The number of firms in an oligopolistic industry
A. must be less than 20. B. must be large enough for firms to be independent. C. must be less than 10. D. must be small enough that firms are interdependent.
The quantity of investment demanded by firms
A. is positively related to the level of uncertainty. B. is unrelated to the interest rate. C. is directly related to the interest rate. D. is inversely related to the interest rate.