Which of the following is a difference between a cartel and a monopoly?
a. A cartel will seek to decrease production in order to increase profits, whereas a monopoly will seek to increase production in order to increase profits.
b. A cartel is a price taker, whereas a monopoly is a price setter.
c. The members of a cartel each have an incentive to cheat on the agreed-upon quantity and price, whereas a monopoly has no such incentive.
d. The members of a cartel sell homogeneous products, while a monopoly sells differentiated products.
c
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The magnitude of the government expenditure multiplier is ________ the magnitude of the tax multiplier
A) not comparable to B) greater than C) less than D) equal to E) greater than for expansionary policy and less than for contractionary policy
In the short run, following an increase in government purchases,
a. the aggregate expenditure line shifts upward by more than the increase in government purchases b. real GDP declines by the change in government purchases times the expenditure multiplier c. the money supply curve shifts rightward because real income rises d. the interest rate rises because the money demand curve shifts rightward e. autonomous consumption and investment increase because of the increase in real income