In order to move aggregate demand to the level consistent with full employment by means of fiscal policy, government officials who set the budget must know
A) the current level of aggregate demand.
B) the level of aggregate demand that would be consistent with full employment.
C) the size of the budget changes required to induce the appropriate-sized changes in aggregate demand.
D) all of the above.
D
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________ is a group of firms that have colluded to limit their output and raise their price
A) A cartel B) An oligopoly C) A strategy D) A duopoly
If marginal cost is constant, what happens to a market if it alters from perfect competition to monopoly without any change in the position of the market demand curve or any variation in costs?
A) Consumer surplus increases, and the previously existing deadweight loss decreases. B) Consumer surplus increases, and the previously existing deadweight loss increases. C) Consumer surplus is eliminated, and an equal-sized deadweight loss is created. D) Consumer surplus decreases in size, and a deadweight loss is created.