If the economy is at point 1 in Figure 13.1 and the central bank issues a credible statement that it can and will cause inflation to rise, what happens next?
A) the economy moves to point 2
B) the economy remains at point 1
C) the economy moves to the left along the AS curve
D) the AS curve shifts down, causing both output and inflation to decline
E) the AS curve shifts up, causing both output and inflation to rise
E
Economics
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If a country has a comparative advantage in oil, then this means that the opportunity cost of producing oil is:
a. high. b. low. c. zero. d. infinite. e. equal to all other goods.
Economics
A group of firms that colludes to limit competition by assigning production quotas and setting a uniform price for all is called a(n)
a. conglomerate b. balanced oligopoly c. cartel d. oligopoly with kinked demand curves for each of the firms in the collusion e. unbalanced oligopoly
Economics