Keynes was especially concerned with explaining the ________ level of output and employment during the ________

Refer to Figure 10.1. Suppose that the government decides to limit monopoly power with price regulation. If the government sets the price at the competitive level, it will set the price at ________

A) P1 B) P2 C) P3 D) P4 E) none of the above

The "kinked" oligopoly demand curve is a result of the assumption by an oligopolist that:

a. price increases will be matched, but price reductions will not. b. price increases will not be matched, but price reductions will. c. both price increases and price reductions will be matched. d. neither price increases, nor price reductions will be matched.