Bank accounts and bonds are examples of money-fixed assets.
Answer the following statement true (T) or false (F)
True
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The LM curve shows points of equilibrium in the money market and combinations of
A) inflation and unemployment. B) aggregate supply and aggregate demand. C) income and the interest rate. D) money supply and money demand.
Which is true of a single price monopoly firm?
A. Its supply curve is equal to its marginal cost function. B. It creates more welfare loss to society than a perfect price discriminating monopolist. C. An increased profits tax will lower the quantity the firm will produce. D. Its shutdown point is where ATC = price.
Management and a labor union are bargaining over how much of a $50 surplus to give to the union. The $50 is divisible up to one cent. The players have one shot to reach an agreement. Management has the ability to announce what it wants first, and then the labor union can accept or reject the offer. Both players get zero if the total amounts asked for exceed $50. Which of the following is a Nash equilibrium?
A. Management requests $35 and the labor union accepts $10. B. Management requests $25 and the labor union accepts $10. C. Management requests $50 and the labor union accepts $0. D. Management requests $20 and the labor union accepts $20.
Expectations are hard to test even though economists know the model the public uses when forming expectations.
Answer the following statement true (T) or false (F)