When firms cooperate without an explicit agreement, they are engaging in

In common value auctions

a. Every bidder know the value of the object being sold b. Each bidder makes the same estimate of the value of the good c. All bidders know the estimates of the others d. The true value of the item is unknown to bidders

As actual output falls below the potential level in the short run, which of the following is most likely to occur? a. More resources will become unemployed. b. The price level will increase

c. Real GDP will increase. d. Nominal GDP will remain constant. e. The natural rate of unemployment will fall.