Along the Keynesian range of the aggregate supply curve, an increase in the aggregate demand curve will increase:
a. both the price level and real GDP.
b. only real GDP.
c. only the price level.
d. real GDP and reduce the price level.
b
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Answer the following statement(s) true (T) or false (F)
1. The copycat game does not have a pure strategy Nash Equilibrium. 2. When mixed strategies are allowed, the Copycat Game does have a Nash equilibrium. 3. Nash equilibrium is a normative concept. 4. For an outcome to be Pareto optimal, the players' total payoff must be as large as possible. 5. If either player is receiving his maximum payoff, then that outcome is Pareto optimal.
How does a network externality serve as a barrier to entry? Is this barrier surmountable? Explain
What will be an ideal response?
Suppose there is a decrease in U.S. income and Mexican income does not change. We would expect to see
A) both the dollar and the peso depreciate. B) both the dollar and the peso appreciate. C) the dollar depreciate and the peso appreciate. D) the dollar appreciate and the peso depreciate.
If producing a good generates pollution (a negative externality), from a social perspective
a. The price will be too low and the quantity produced will be too low b. The price will be too low and the quantity produced will be too high c. The price will be too high and the quantity produced will be too low d. The price will be too high and the quantity produced will be too high e. The price will be too low but the quantity produced will be correct