Equilibrium is reached where there is no inherent force causing quantity supplied or quantity demanded to change.
Answer the following statement true (T) or false (F)
True
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Refer to Figure 3.4. A Nash equilibrium is achieved at which cell(s) in the payoff matrix?
A) only at (North, North) B) only at (South, South) C) at both (North, North) and at (South, South) D) There is no Nash equilibrium.
In a competitive market equilibrium the ________ equals the ________ of the last unit sold
A) marginal benefit; marginal cost B) total profit; marginal benefit C) profit; selling price D) total cost; marginal cost
An unexpected fall in durable goods orders should send bond prices __________ and stock prices __________
A) up; up B) up; down C) down; up D) down; down
The economy is in long-run equilibrium when there is a correctly anticipated increase in aggregate demand. According to new classical theory, the price level will __________ and Real GDP will __________
A) fall; rise B) rise; fall C) fall; remain unchanged D) rise; remain unchanged E) remain unchanged; remain unchanged