A given industry, Z, is such that the 1-firm, 2-firm, 4-firm and 8-firm concentration ratios are the same. Based on this, we can conclude that Industry Z is

A study has estimated the effect of changes in interest rates and consumer confidence on the demand for money to be: ln M = 14.666 + .021 ln C ? 0.036 ln r, where M denotes real money balances, C is an index of consumer confidence, and r is the interest rate paid on bank deposits. Based on this study, a 5 percent increase in interest rates will cause the demand for money to:

A. increase by 1.8 percent. B. increase by 0.18 percent. C. drop by 0.18 percent. D. drop by 1.8 percent.

Refer to the figure above. If AD 1 shifts to AD 2, then the equilibrium output:

Increases from Q1 to Q3 while the price level falls from P2 to P1 Increases from Q1 to Q2 while the price level rises from P1 to P2 Increases from Q1 to Q3 while the price level rises from P1 to P2 Increases from Q1 to Q2 while the price level falls from P2 to P1