A Decrease in Aggregate Demand, All Other Things Unchanged, in the Long

question 80

Multiple Choice

A decrease in aggregate demand, all other things unchanged, in the long run will generate

• A) an increase in potential output and no change in the price level.
• B) a decrease in potential output and no change in the price level.
• C) no change in potential output and an increase in the price level.
• D) no change in potential output and a decrease in the price level.

Understand the Nash equilibrium in the context of oligopoly behavior.

Explain the incentives for firms to cheat within a cartel.

Understand the implications of antitrust legislation on business practices.

Describe strategies firms may use in oligopolistic competition, such as tit-for-tat.

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Definitions:

Primary Liability

The direct responsibility to pay or compensate for a loss or damage, without the necessity to seek contribution from others.

Cashier's Checks

A check guaranteed by a bank, drawn on the bank's own funds and signed by a cashier.

Capacity

The legal ability of a person to enter into a contract, often determined by factors such as age, mental competency, and legal status.

Individual Differences

Variations among individuals in their behaviors, abilities, experiences, and interests, often considered within the study of psychology to understand human complexity.