A period of time in which the overall pace of business activity is falling is known as
A. an expansion.
B. deflation.
C. inflation.
D. a contraction.
Answer: D. a contraction.
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All of the points inside a production possibilities frontier are ____; all of the points on the production possibilities frontier are ____.
A. efficient; inefficient B. inefficient; efficient C. attainable; unattainable D. rational; zero-cost E. unattainable; efficient
When the domestic currency depreciates, domestic goods become more expensive to foreign buyers
a. True b. False Indicate whether the statement is true or false
When the economy is experiencing a negative output gap:
A. some people and some capital are unemployed. B. the economy may be in a recession. C. there is little inflationary pressure due to low demand. D. All of these statements are true.
In game theory, the outcome achieved when each player's choice does not depend on what the other player does is called:
a. the Nash equilibrium. b. the dominant-strategy equilibrium. c. the tit-for-tat strategy. d. prisoner's dilemma.