An Increase in the Expected Price Level Shifts the

question 20

Multiple Choice

An increase in the expected price level shifts the

• A)short-run and long-run aggregate supply curves left.
• B)the short-run but not the long-run aggregate supply curve left.
• C)the long-run but not the short-run aggregate supply curve left.
• D)neither the long-run nor the short-run aggregate supply curve left.

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Definitions:

Duopolists

Two firms that dominate a particular market, often engaging in strategic interaction that impacts pricing, production, and market share.

Collude

When two or more firms work together to control prices, limit supply, or thwart competition in a way that distorts market outcomes.

Monopoly Price

The price a monopolist sets, which is higher than the competitive price, due to the lack of competition in the market.

Competitive Level

Competitive level refers to the intensity of rivalry among firms in a market, affecting pricing, innovation, and market strategy.