1. Oligopolistic firms:
A. may seek to drive competitors out of business for personal reasons, even at great expense.
B. do not pay attention to a competitors prices because there's nothing they can do about them.
C. would not drive competitors out of business to gain control of the market.
D. know that their competitors pay no attention to their pricing decisions and therefore hope to gain market share by lowering price.
2. The line which forms a 45-degree angle in the Keynesian cross model is
a. aggregate supply line.
b. income line.
c. aggregate demand line.
d. both a) and b) are correct.