If aggregate demand shifts right and the President and Congress want to use fiscal policy to reverse the change in output, they could
a. increase government expenditures. If by the time policy has been implemented the economy has moved back to long-run equilibrium, then this policy will raise output above its long-run level.
b. increase government expenditures. If by the time policy has been implemented the economy has moved back to long-run equilibrium, then this policy will reduce output to below its long-run level.
c. decrease government expenditures. If by the time policy has been implemented the economy has moved back to long-run equilibrium, then this policy will raise output above its long-run level.
d. decrease government expenditures. If by the time policy has been implemented the economy has moved back to long-run equilibrium, then this policy will reduce output to below its long-run level.
d
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As a manufacturer becomes a mass producer, generally productivity ____ and wage rates _____.
A. falls; fall B. rises; rise C. rises; fall D. falls; rise
Refer to Figure 24-1. Ceteris paribus, a decrease in interest rates would be represented by a movement from
A) AD1 to AD2. B) AD2 to AD1. C) point A to point B. D) point B to point A.
Answer the following statements true (T) or false (F)
1) The likelihood of a rival's announcement of a planned strategy being truthful depends on the degree to which it's interests align with its rivals. 2) It is not possible for a game to have no pure -strategy Nash equilibria. 3) Mixed strategies are inherently random. 4) A manager's optimal decision regarding their firm's strategy requires that the manager also considers their rival's best response. 5) Cheap talk is an example of a refinement.
Which of the following is the best example of a public good?
a. food stamps b. police services c. trash removal d. a restaurant meal e. an IPad