Refer to Goods X and Y. How would a budget line be affected if income and both prices all simultaneously doubled?
Assume that good X is on the horizontal axis and good Y is on the vertical axis in the consumer-choice diagram. PX denotes the price of good X, PY is the price of good Y, and I is the consumer's income. Unless otherwise stated, the consumer's preferences are assumed to satisfy the standard assumptions.
a. It would shift out so that all quantities are doubled.
b. It would shift in so that all quantities are halved.
c. It would not be affected.
d. The slope would be doubled.
c. It would not be affected.
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In the Keynesian model with both a variable price level and money wage, the aggregate supply function will be
a. upward sloping but flatter than for the variable-price/fixed-wage version of the model. b. upward sloping but steeper than for the variable-wage/fixed-price version of the model. c. vertical. d. horizontal.
In a two-player simultaneous game, if player A has a dominant strategy and player B does not, player B will
A) employ a mixed strategy. B) choose his best strategy assuming that player A plays her dominant strategy. C) not achieve a Nash equilibrium. D) assume that player A does not choose her dominant strategy.
In 2007, which U.S. firm showed the first indication of significant problems in the financial sector?
a. AIG b. Bear Stearns c. J.P. Morgan Chase d. Lehman Brothers