If Oligopolists Engaged in Some Sort of Collusion,industry Output Would

question 139

Multiple Choice

If oligopolists engaged in some sort of collusion,industry output would be _____ and price would be _____ than under perfect competition.

• A)smaller; lower
• B)smaller; higher
• C)smaller; no different
• D)greater; lower
• E)greater; higher

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Definitions:

Aggregate Demand

The overall demand for all the goods and services in an economy, reflecting the economic activity and consumer spending power.

Keynes's Followers

Individuals or economists who support or develop the theories of John Maynard Keynes, relating to government intervention in the economy to manage aggregate demand.

Monetary Policy

Actions of a central bank, currency board, or other regulatory committee that determine the size and rate of growth of the money supply, which in turn affects interest rates.

MPC

Marginal Propensity to Consume, the proportion of an increase in income that gets spent on consumption.