Cartels can detect cheating by
A) reporting each other to government authorities.
B) keeping two sets of accounting books, one for internal use and one for sharing with the cartel.
C) dividing the market by region so that each cartel member is the only seller in a particular region.
D) All of the above.
C
You might also like to view...
If the coefficient a in the new classical expression for short-run aggregate supply were equal to zero,
A) aggregate output would always be at its full-employment level. B) the short-run aggregate supply curve would slope down. C) the short-run aggregate supply curve would be a horizontal line. D) aggregate output would only differ from its full-employment level if the actual price level did not equal the expected price level.
When there is an expansionary gap, inflation will ________, in response to which the Federal Reserve will ________ real interest rates, and output will ________.
A. decline; lower; expand B. increase; raise; decline C. decline; lower; decline D. decline; raise; decline