Between 1955 and 2006, the federal government purchases of goods and services as a percentage of GDP has:

Everything else held constant, an increase in financial frictions ________ aggregate ________

A) increases; demand B) decreases; demand C) decreases; supply D) increases; supply

A cartel will break down more easily if

A) there are only a few members. B) industry demand is very stable. C) market prices can be observed easily. D) there are many entrants in the industry.