Keynesians are more likely to propose
A) contractionary monetary policy to eliminate an inflationary gap than expansionary monetary policy to eliminate a recessionary gap.
B) contractionary monetary policy to eliminate a recessionary gap than contractionary monetary policy to eliminate an inflationary gap.
C) expansionary monetary policy to eliminate a recessionary gap than contractionary monetary policy to eliminate an inflationary gap.
D) none of the above; instead, Keynesians are as likely to propose expansionary monetary policy to eliminate a recessionary gap as they are to propose contractionary monetary policy to eliminate an inflationary gap.
C
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The law of diminishing returns occurs because
A) the marginal product of an additional worker is greater than the marginal product of the previous worker. B) the marginal product of a variable input, such as labor, depends in part on the amount of fixed inputs, such as capital. C) total production decreases as more of the variable inputs are used. D) adding more and more workers leads to a decrease in the quantity of capital.
A group of firms that has entered into a collusive agreement to restrict output and increase prices and profits is called
A) a compliance. B) a cartel. C) an oligopoly. D) a duopoly.