Suppose the Economy Is Initially in Long-Run Equilibrium and Aggregate

question 30

Multiple Choice

Suppose the economy is initially in long-run equilibrium and aggregate demand rises. In the long run prices

• A) and output are higher than in the original long-run equilibrium.
• B) and output are lower than in the original long-run equilibrium.
• C) are higher and output is the same as the original long-run equilibrium.
• D) are the same and output is lower than in the original long-run equilibrium.

Examine the role and effect of government regulation and antitrust laws on oligopolistic markets and collusive behavior.

Evaluate the economic outcomes of different strategic interactions among oligopolistic firms using payoff matrices.

Understand why and how cartels and oligopolies form and their impact on market structures.

Identify the conditions under which collusion among firms in an oligopoly is more likely to occur.

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Definitions:

Everyday Activities

Common and routine actions performed by individuals on a daily basis, such as eating, dressing, and working.

Implicit Instruction

A teaching method where learners acquire knowledge unconsciously through exposure and practice, rather than through explicit teaching of rules and concepts.

Kinship Obligations

Responsibilities and duties that are dictated by the relationships between family members or within a community.

Economic Contributions

The value or services provided by individuals or entities to the overall economy, impacting growth and stability.