Other things equal, an increase in the consumer confidence index tends to raise the average propensity to consume

If five firms of similar sizes join to form a cartel, then it is most likely that

A) they will charge a common, lower market price. B) they will collectively produce less than before. C) all five firms will earn the same profits as before. D) all five firms as a group will have falling profits, but increased output.

Which of the following policy options would not be used to eliminate an inflationary gap?

a. Decrease government spending. b. Decrease consumption. c. Increase investment. d. Decrease taxes.