A depression can be defined as:
a. a mild reduction in total production coupled with a rising unemployment rate that lasts for several years.
b. a mild decline in total production that lasts less than six months.
c. a severe fall in stock prices that causes financial panic and lasts for several years.
d. a severe reduction in total production coupled with high unemployment that lasts for several years.
e. a decline in government spending and taxes that lasts for several months.
Question 2
Which of the following statements is always true with respect to oligopolists?
a. They react slowly to actions taken by other firms
b. They lower prices together
c. They raise prices together
d. They know with certainty what they other firms will do
e. They take into consideration how other firms might react.
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