If the long-run Phillips curve shifts to the left, then for any given rate of money growth and inflation the economy has
a. higher unemployment and lower output.
b. higher unemployment and higher output.
c. lower unemployment and lower output.
d. lower unemployment and higher output.
d
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Refer to Game Matrix II. When would the upper left-hand corner be the likely outcome of this game?
Game Matrix II
The following questions refer to the game matrix below. Player A can play the strategies "High" and "Low," and Player B can play the strategies "Odd" and "Even."
a. When the game is played sequentially, with A being the first player.
b. When the game is played sequentially, with B being the first player.
c. When the players choose their strategies simultaneously.
d. The upper left-hand corner would never be the likely outcome, because the upper right-hand corner makes both player better off.
Distinguish between demand and quantity demanded. Do the same for supply and quantity supplied.
What will be an ideal response?
The height of the market demand curve
a. at any quantity shows the value — to someone — of the last unit of the good consumed b. shows the market value of a good or service c. increases as more of a good or service is consumed d. shows the cost of producing each unit of a good or service e. measures the side payment necessary to achieve economic efficiency
An example of targeted government spending is its spending on
a. education b. police protection c. national defense d. space exploration e. welfare