Suppose that Jack promises that if Jill chooses the high price, he will too. Jill has no incentive to cheat on the agreement.

Suppose that an economy is initially producing at the full-employment level of output. Now suppose there is a reduction in the money supply. Other things being equal we can expect

A) demand-side inflation. B) supply-side inflation. C) deflation. D) cost-pull inflation.

Suppose the cost curves in the above figure apply to all firms in the market. If the initial price is P1, firms are ________ and some firms will ________ the industry

A) making an economic profit; leave B) making an economic profit; enter C) incurring an economic loss; leave D) incurring an economic loss; enter