Which of the following circumstances is most likely to result from a competitive market?
a. Price controls are implemented.
b. Existing products are improved.
c. Production systems remain stagnant.
d. No new products are introduced.
b. Existing products are improved.
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Suppose a player can play 2 possible actions and has 5 possible decision nodes in a sequential game. Then he has 10 possible strategies he can play.
Answer the following statement true (T) or false (F)
What does a vertical Phillips curve in the long run imply? a. In the long run, the rate of unemployment will converge toward zero. b. Higher inflation does not permanently reduce the rate of unemployment. c. Higher inflation increases the rate of unemployment
d. Higher inflation lowers the rate of unemployment.
Which of the following is the main weakness of the classical model?
a. It assumes that the labor supply curve is vertical. b. It assumes that the labor supply curve is horizontal. c. It assumes that the labor market clears. d. It assumes that the labor demand curve is horizontal. e. It assumes that the labor demand curve is vertical.
When the money market is drawn with the value of money on the vertical axis, if money supply and money demand both shift to the right
a. the price level must have risen b. the price level must have fallen. c. the price level rises if money supply shifts farther than money demand. d. the price level falls if money supply shifts farther than money demand.