Refer to Figure 13-3. Suppose the economy is at point A. If the economy experiences a supply shock, where will the eventual short-run equilibrium be?
A) A B) B C) C D) D
B
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If Table 12.2 represents all the investments available to the economy, the nominal interest rate is 2.5 percent and there is no inflation, what will be the level of investment in the economy?
A) $0 B) $200 C) $600 D) $900
In the real world, wage negotiations typically do not drag on for years:
A. because the company can simply offer the split that would eventually occur if the two sides played all the rounds. B. because neither a company nor employees can afford to not work for that long. C. unless the employees play an ultimatum game using a union to negotiate. D. None of these statements is true.
During the Industrial Revolution:
A. artisans lost their power to mercantilists. B. feudal lords lost their power to artisans. C. mercantilists lost their power to capitalists. D. capitalists lost their power to mercantilists.
Which of the following is NOT a reason why some industries are oligopolies?
A. independence in pricing behavior B. mergers C. economies of scale D. barriers to entry