When the government considers whether it should change its spending in response to a recession, it must weigh the tradeoff between ____________ and ________________.
A. faster recovery time; inflation
B. less output; higher prices
C. more output; lower prices
D. faster recovery time; lower prices
A. faster recovery time; inflation
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The figure above shows Sam's budget line. Which of the following equals the vertical intercept of Sam's budget line?
A) Y/Pc B) Y/Pg C) -(Pc/Pg) D) -(Pg/Pc)
If a strategy is a best response, then
A) it will never be played. B) it will never be part of a Nash equilibrium. C) A and B are correct. D) it could be part of a Nash equilibrium.
What is the measure of the income received by owners of resources used in making final goods and services?
a. factor payments b. product payments c. indirect earnings d. direct earnings
A real variable is
a. measured in terms of after-tax dollars b. measured in terms of dollars and not foreign currency c. measured in nominal terms d. measured in terms of current dollars e. measured in terms of purchasing power