If there is an increase in the price of oil, then
a. unemployment rises. If the central bank tries to counter this increase, inflation rises.
b. unemployment rises. If the central bank tries to counter this increase, inflation falls.
c. unemployment falls. If the central bank tries to counter this decrease, inflation falls.
d. unemployment falls. If the central bank tries to counter this decrease, inflation rises.
a
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Which of the following statements is (are) correct? There is agreement between the Keynesians and monetarists that
a. an increase in aggregate demand will increase both output and price in the short run. b. there is a trade-off between inflation and unemployment in the short run. c. in the long run, when the expected price level also has time to adjust, output will not be affected by changes in aggregate demand. d. All of the above e. None of the above
Consider the Matching Pennies game:
Player B - heads Player B - tails Player A - heads 1, -1 -1, 1 Player A - tails -1, 1 1, -1 Suppose Player B always uses a mixed strategy with probability of 3/4 for head and 1/4 for tails. Which of the following strategies for Player A provides the highest expected payoff? A) Mixed strategy with probability 1/4 on heads and 3/4 on tails B) Mixed strategy with probability 1/2 on heads and 1/2 on tails C) Mixed strategy with probability 3/4 on heads and 1/4 on tails D) Pure strategy in which Player A always selects heads
For a monopoly earning positive economic profits at the profit-maximizing output level, all of the following are true EXCEPT
A) P > ATC. B) P > MR. C) P > MC. D) P = MR.
What fraction of the world's population lives on no more than $2 a day?
A. 1/10 B. 1/4 C. 1/2 D. 3/4