An increase in the money supply will lead to an increase in equilibrium real GDP only if:
a. the aggregate demand curve is horizontal.
b. the aggregate supply curve is vertical.
c. the investment function is horizontal.
d. the aggregate supply curve is not vertical.
e. the investment function is upward-sloping.
d
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If an oligopolistic game is repeatedly played, which of the following can occur?
A) Players can learn ways to cooperate and earn an economic profit. B) The competitive price and output consistently is the final result. C) Firms can learn how to cheat more effectively on the other player. D) One firm will be driven out of business. E) An implicit agreement is reached in which one firm constantly cheats on the cartel and the other firm complies with it.
A mugger steals $25 from John Doe. What can an economist conclude?
A) Nobody gained in the "exchange." B) Both parties gained in the "exchange." C) Only the mugger's wealth has increased. D) Nothing, because economists study strictly voluntary exchanges.
The beauty of Nash's equilibrium concept is that
a. all games have one. b. all games have no more than one. c. all games have a rich set to choose from. d. it is a Pareto optimum.
Assuming a homogeneous product, the Bertrand duopoly equilibrium price is
A) the same as the Cournot equilibrium price. B) less than the Cournot equilibrium price. C) greater than the Cournot equilibrium price. D) equal to the monopoly price.