The fraction of an industry's sales that are accounted for by the largest firms is called

Suppose the Fed pursues a policy that leads to higher interest rates in the United States. How will this policy affect real GDP in the short run if the United States is an open economy? This policy

A) increases investment spending, consumption spending, and net exports, all of which increase GDP. B) reduces investment spending, consumption spending and net exports, all of which reduce GDP. C) reduces investment spending and consumption spending, both of which reduce GDP. Net exports rise which increases GDP. D) reduces investment spending and consumption spending, both of which reduce GDP. Net exports fall which increases GDP.

Refer to Figure 8.2. As the competitive industry, not just the firm in question, moves toward long-run equilibrium, the firm will be forced to operate at what level of output?

A) 22 B) 34 C) 38. D) 50 E) 64