When Current Real Production of Goods and Services (Real GDP)is

question 112

Multiple Choice

When current real production of goods and services (real GDP) is greater than planned aggregate expenditure

• A)inventories of goods and services are rising
• B)firms will increase production to replenish depleted inventories
• C)businesses and households will increase planned aggregate spending because it is in their interest to promote employment
• D)the price level will automatically rise to restore equilibrium in the economy
• E)leakages must equal planned injections

Comprehend the kinked-demand curve model and its implications for pricing and output decisions.

Recognize the conditions and outcomes of collusive and non-collusive oligopolies.

Assess the impact of rival behavior on a firm’s demand and marginal revenue curves in an oligopoly.

Analyze the strategic behavior of firms regarding pricing, outputs, and advertising in oligopolistic competition.

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Definitions:

Confounding Variables

Variables that the researcher failed to control, or eliminate, damaging the internal validity of an experiment by potentially influencing the dependent variable.

Random Assignment

A method used in experiments to assign participants or items to different groups in a way that each has an equal chance of being in any group.

Placebo

A substance with no therapeutic effect, used as a control in testing new drugs, or to influence a participant's belief in the efficacy of a treatment.

Acupuncture Treatments

Involves the insertion of thin needles through the skin at strategic points on the body, used primarily for pain relief and therapeutic purposes in traditional Chinese medicine.