Answer:
C) the monopoly model
Explanation:
First of all, collusion is illegal, and it is defined as secret cooperation between individuals or organizations that should be competing against each other.
In this case, the oligopolistic firms should be competing against each other trying to earn a larger market share, but since they collude together, they will act as if they were one single large monopoly. Usually collusion leads to higher prices, benefiting the companies but hurting the customers. Since all the competing firms in the market decided to work together, they will set their prices in a similar manner to a monopoly since there is no real competition between them.
Starting from a full-employment equilibrium, an increase in aggregate demand increases, and creates an inflationary gap.
In an economy, the total quantity of demand for all finished goods and services is measured as aggregate demand. A measure of aggregate demand is the total amount of money spent on certain goods and services at a particular price level and period.
The entire demand for products and services at any given price level throughout a specific period is referred to as aggregate demand in macroeconomics. Since the two indicators are derived in the same way, aggregate demand over the long run equals gross domestic product (GDP). A country's gross domestic product (GDP) reflects all the products and services that are produced there, whereas aggregate demand refers to consumer demand for the same goods.
Learn more about Aggregate demand, here
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Answer:
False
Explanation:
Illiquidity in the context of a business refers to a company that does not have the cash flows necessary to make its required debt payments, although it does not mean the company is without assets.
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