In a setting of repeated competition:
A. the cooperative outcome is the repetition in each period of the Nash equilibrium outcome that would arise were the firms to compete just once.
B. the non-cooperative outcome is the repetition in each period of the Nash equilibrium outcome that would arise were the firms to compete just once.
C. the non-cooperative outcome is the Nash equilibrium that arises only after firms compete many times.
D. the cooperative outcome is the Nash equilibrium that arises after firms compete many times.
B. the non-cooperative outcome is the repetition in each period of the Nash equilibrium outcome that would arise were the firms to compete just once.
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Suppose that the chain-weighted index for GDP in Panama was 180 in 2015 and 188 in 2016. The inflation rate between those two years was approximately
A) 1.1 percent. B) 4.4 percent. C) 8 percent. D) 10.4 percent.
Using the money demand and money supply model, an open market sale of Treasury securities by the Federal Reserve would cause the equilibrium interest rate to
A) not change. B) increase, then decrease. C) increase. D) decrease.
Policy should create an environment in which the economy can expand its productive capacity rapidly, because that is the ultimate source of higher living standards. This task is the realm of
A. growth policy. B. stabilization policy. C. labor policy. D. inflation policy.
For a cost-push inflation to occur, oil price increases must be accompanied by
What will be an ideal response?