In the Battle of the Sexes game, there
a. are two Nash equilibria, neither of which is Pareto optimal.
b. is one Nash equilibrium and it is not Pareto optimal.
c. is one Nash equilibrium and it is Pareto optimal.
d. are two Nash equilibria, both of which are Pareto optimal.
d. are two Nash equilibria, both of which are Pareto optimal.
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Costs that change as output changes are called incremental costs
Indicate whether the statement is true or false
If the economy is initially at equilibrium and an unexpected decline in aggregate demand takes place, in the short run aggregate output will
A) fall in the new classical view, but not in the new Keynesian view. B) fall in the new Keynesian view, but not in the new classical view. C) fall in both the new Keynesian and new classical views. D) remain at full employment in both the new classical and new Keynesian views.
Emeril is the owner of a restaurant. He decides to raise the wages of his workers even though he faces an excess supply of labor. His decision
a. might increase profits if it attracts a better pool of workers to apply for jobs at his restaurant. b. will reduce the excess supply of labor. c. is an example of the benefits of a minimum-wage law. d. All of the above are correct.
Which of the following illustrates a macroeconomic question?
A. Should the salaries of financial executives be regulated by the government? B. Are increasing wage demands by workers contributing to price inflation? C. What is the least costly way to produce automobiles and trucks in the United States? D. Will the introduction of a new computer chip change the demand for computers?