Which of the following statements about the circular-flow diagram is correct?
a. One must imagine that the economy operates without money in order to make sense of the diagram.
b. The diagram leaves out details that are not essential for understanding the economic transactions that occur between households and firms.
c. The government cannot be excluded as a decision maker in a circular-flow diagram.
d. All of the above are correct.
b
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A decrease in demand and an increase in supply will
A. affect price in an indeterminate way and decrease the equilibrium quantity. B. decrease price and affect the equilibrium quantity in an indeterminate way. C. decrease price and increase the equilibrium quantity. D. increase price and affect the equilibrium quantity in an indeterminate way.
Discuss three types of antitrust policy.
What will be an ideal response?