Use the following information to answer this question. If nominal GDP rises from $100 trillion to $120 trillion, while the GDP deflator rises from 2.0 to 2.2, the percentage change in real GDP is approximately equal to

Given a fixed upsloping AS curve, a rightward shift of the AD curve will:

A. cause cost-push inflation. B. increase real output but not the price level. C. increase the price level but not real output. D. increase both the price level and real output.

Alto and Saxon are two oligopolists that hold most of the market power in the bottled water industry. Which of the following actions shows that collusion is occurring?

a. Alto and Saxon agree to merge to increase their market power. b. Alto suffers a sales loss after Saxon lowers its prices. c. Saxon launches an advertising campaign against Alto. d. Alto and Saxon agree to mutually restrict production to drive up prices.