If government uses fiscal policy to restrain cost-push inflation, we can expect:
A. the unemployment rate to rise.
B. the unemployment rate to fall.
C. the aggregate demand curve to shift rightward.
D. tax-rate declines and increases in government spending.
A. the unemployment rate to rise.
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How does the text distinguish between coercion and persuasion?
A) Coercion uses force; persuasion uses reasoning. B) Coercion uses violence; persuasion is peaceful. C) Coercion cannot make everyone better off, but persuasion can. D) Coercion is evil, and persuasion is good. E) Coercion induces cooperation by threatening to reduce options, persuasion by promising to expand options.
A group of firms that has entered into a collusive agreement to restrict output and increase prices and profits is called
A) a compliance. B) a cartel. C) an oligopoly. D) a duopoly.