Wister and Narsum produce household appliances. Which of the following actions could be considered collusive?
a. Wister sets a price that maximizes its profits.
b. Narsum becomes the price leader in the industry by increasing output.
c. Wister has a strategy to react to any pricing changes made by Narsum.
d. Narsum agrees to divide mutual profits with Wister.
d. Narsum agrees to divide mutual profits with Wister.
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Which of the following statements is true of Black Wednesday?
A) Following Black Wednesday, the British pound became less valuable relative to the German mark. B) Currency traders who had borrowed pounds to buy German marks incurred huge losses due to Black Wednesday. C) The British government earned enormous profits by selling foreign currency reserves following Black Wednesday. D) Following Black Wednesday, the British pound became more valuable relative to the German mark.
According to the new Keynesian economists, SAS adjusts slowly to a change in AD because of
A) high menu costs. B) staggered overlapping wage contracts. C) efficiency wages. D) All of the above combinations explain slow adjustments in SAS.