A mixed strategy in which positive probability is placed on more than one action can be a best response to another player's strategy only if the expected payoff from playing the pure strategies (over which the individual is mixing) is the same.
Answer the following statement true (T) or false (F)
True
Rationale: If, for a given strategy by the other player, the expected payoff of the pure strategies were not the same, then the player would best respond by placing probability 1 on the pure strategy that has the higher expected payoff.
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Technological change is the key to sustaining economic growth
Indicate whether the statement is true or false
Between 1945 and 1950, the U.S. price level rose by one-third. This increase was complemented by which of the following?
(a) An increase in nominal and real GDP (b) An increase in nominal GDP but a decrease in real GDP (c) An increase in real GDP but a decrease in nominal GDP (d) Stable nominal and real GDP
Involuntary unemployment
A. exists when there is a shortage of labor. B. exists when there is an excess quantity of labor supplied. C. will increase as the wage rate falls. D. occurs when the wage rate is below the equilibrium wage rate.
Which of the following will NOT occur in the short run when the money supply decreases?
A. The interest rate will increase. B. The price level decreases. C. People will buy fewer goods and services. D. Aggregate supply decreases.