In the Short-Run Keynesian Model Where the Marginal Propensity to Consume

question 77

Multiple Choice

In the short-run Keynesian model where the marginal propensity to consume is 0.5, to offset an expansionary gap resulting from a $1 billion increase in autonomous consumption, government purchases must be:

• A)increased by $1 billion.
• B)decreased by $1 billion.
• C)decreased by $0.5 billion.
• D)decreased by $2 billion.

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.

Differentiate between imperfect competition, oligopoly, and monopolistic competition.

---

Definitions:

CPU

The Central Processing Unit, a primary component of a computer that performs most of the processing inside a computer.

SuperFetch

A technology in Windows that pre-loads frequently used applications into memory to reduce loading times.

Windows

An operating system developed by Microsoft, widely used on personal computers, featuring a graphical user interface.

RAM

A type of computer memory that is accessible faster than permanent storage, enabling efficient data processing and program execution.