If the central bank increases the money supply, in the short run, output
a. rises so unemployment rises.
b. rises so unemployment falls.
c. falls so unemployment rises.
d. falls so unemployment falls.
b
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Intel and AMD are a duopoly that produces CPU chips. Intel and AMD can conduct R&D or they cannot conduct R&D. The table above shows the payoff matrix for the two firms. The numbers are millions of dollars of profit
The Nash equilibrium is for Intel to ________ and for AMD to ________. A) conduct R&D; conduct R&D B) conduct R&D; not conduct R&D C) not conduct R&D; conduct R&D D) not conduct R&D; not conduct R&D E) conduct R&D; either conduct R&D or not conduct R&D, the equilibrium could be either choice for AMD
According to your textbook, expansionary monetary policy
A) encourages entrepreneurs to invest in projects that only appear profitable. B) creates a temporary "boom," or economic expansion. C) will ultimately be followed by a "bust," as entrepreneurs learn of their forecasting errors. D) tends to generate all of the above.
The long-run Phillips curve would shift to the right if
a. the money supply growth rate decreased or if labor markets become more flexible. b. the money supply growth rate decreased, but not if labor markets become more flexible. c. labor markets become more flexible, but not if the money supply growth rate decreased. d. None of the above is correct.
Following the sharp increases in oil prices in the United States caused by the OPEC oil embargo of 1973–1974, U.S. automakers started building smaller, more fuel-efficient cars. This development caused the
A. demand curve for oil to shift out. B. demand curve for oil to shift in. C. supply curve of oil to shift out. D. supply curve of oil to shift in.