Automatic stabilizers are designed to
A. simplify the tax system.
B. promote global trade.
C. stabilize the bi-partisan budget process.
D. moderate changes in disposable income.
Answer: D
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Refer to the payoff matrix below. In reference to the Nash equilibrium/equilibria in this game, which of the following is true?
Healthy Snacks and Best Treats are two firms competing in the health food snacks market. Both are considering introducing a new health food snack made purely of dried power fruits. The payoff matrix shows their net economic profit in millions for the different strategies.
A) Best Treats Do Not Introduce and Healthy Snacks Do Not Introduce is a Nash equilibrium.
B) Best Treats Introduce and Healthy Snacks Introduce is a Nash equilibrium.
C) There are no Nash equilibria in this game.
D) Best Treats Introduce and Healthy Snacks Do Not Introduce is a Nash equilibrium.
The argument first used to protect the U.S. steel industry from foreign competition over a century ago was the
a. diversity of industries argument b. antidumping argument c. national security argument d. retaliation argument e. infant industries argument
The development of the Internet and e-mail to often replace regular mail services is an example of:
A. specialization. B. creative destruction. C. derived demand. D. roundabout production.
Refer to the graph below. Assume that the economy is in initial equilibrium where AD1 intersects AS1. If there is an unanticipated increase in aggregate demand, then according to new classical economics the economy will self-correct with a:
A. Movement from point B to point A
B. Movement from point A to point B
C. Shift from AS1 to AS2
D. Shift from AD2 to AD1