Refer to the diagram, in which Q f is the full-employment output. If the economy's current aggregate demand curve is AD 0 , it is experiencing:
A. a positive GDP gap.
B. a negative GDP gap.
C. inflation.
D. an adverse supply shock.
B. a negative GDP gap.
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A firm is most likely to experience economies of scale if its start-up costs are high and its marginal cost is ________.
A. high B. low C. decreasing D. increasing
Refer to Figure 17-4. Which of the following is true at W2?
A) The supply curve is positively sloped. B) The income effect and the substitution effect are equal. C) The substitution effect is larger than the income effect. D) The income effect is larger than the substitution effect.
In the prisoner's dilemma game, each player's dominant strategy is also the Nash equilibrium
Indicate whether the statement is true or false
In the long run, when price is greater than average total cost, some firms in a competitive market will choose to enter the market
a. True b. False Indicate whether the statement is true or false