The analysis of oligopolistic behavior is difficult because
a. there are few real-world examples of oligopolies for economists to study.
b. oligopolists make decisions independently of each other.
c. firms in oligopolistic industries react to each other's behavior in many ways.
d. economists have paid little attention to the topic in recent years and so have not yet applied to it the techniques of modern economic theory.
c
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To find aggregate planned expenditures, which of the following must be added to consumption expenditure?
i. net exports ii. investment iii. government expenditure on goods and services A) i only B) ii only C) iii only D) i and ii E) i, ii, and iii
The aggregate supply curve shows the relation between
A) the real interest rate and the aggregate amount of output that firms supply. B) the price level and the aggregate amount of output that firms supply. C) the supply of goods by firms and the price of goods relative to the price of nonmonetary assets. D) the inflation rate and the unemployment rate.