At the start of a cost-push inflation,
What will be an ideal response?
only real GDP changes while the price level remains constant.
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When a hard frost hits orange groves in Florida, the supply of orange juice ________ and price ________
A) increases; increases B) increases; decreases C) decreases; increases D) decreases; decreases
Which of the following would NOT be a cause for an increased American demand for the Mexican peso?
A) The United States having lower interest rates than Mexico B) Increased American demand for Mexican goods C) The expectation by speculators that the value of the peso is edging up D) More economic expansion in the United States E) None of the above.
At the beginning of the financial crisis, banks were hurt by all of the following EXCEPT
A) declines in the value of mortgage-backed securities. B) defaults on mortgages by those with subprime mortgages. C) holding too many Treasury bonds. D) not being repaid on loans to real estate developers.
According to the matrix shown, the firms:
This prisoner's dilemma game shows the payoffs associated with two firms, A and B, in an oligopoly and their choices to either collude with one another or not.
A. both have a dominant strategy.
B. both have an incentive to renege on collusion.
C. both have an incentive to compete.
D. All of these statements are true.