Using Figure 1 above, if the aggregate demand curve shifts from AD1 to AD2 the result in the short run would be:
A. P1 and Y2.
B. P3 and Y1.
C. P2 and Y2.
D. P2 and Y3.
Answer: D
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According to the textbook application, California’s urban smog problem
a. diminished because of the responsiveness of U.S. automobile manufacturers b. was never addressed by state legislation c. was linked through scientific study to auto emissions in the 1950s d. all of the above
Which of the following will both make people buy less?
a) wealth falls and interest rates fall b) wealth and interest rates rise c) wealth falls and interest rates rise d) wealth rises and interest rates fall
The direct exchange of goods and services for other goods and services is known as
A. barter. B. purchasing power. C. remediation. D. intermediation.
Prisoner's dilemma games imply that cooperative behavior between two people or two firms always breaks down. But reality teaches us that people and firms often cooperate successfully to achieve their goals. Why do the results from prisoner's dilemma
games fail to predict real-world results? A) Prisoner's dilemma games do not permit people or firms from reneging on agreements, which often occurs in real-word situations. B) The prisoner's dilemma does not apply to most business situations that are repeated over and over. C) Prisoner's dilemma games predict the behavior of people and firms that engage in illegal activity; most people and firms do not resort to illegal activity. D) Most real-world situations involve more than two people or firms; the prisoner's dilemma is only applicable to situations that involve two parties.