Which of the duopoly models has the highest overall combined profit level?
A. The Stackelberg Leader-Follower model
B. The Bertrand model
C. The Cournot model
D. The shared monopoly model
Answer: D
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In the real intertemporal model with investment, there is intertemporal substitution with respect to
A) consumption and leisure. B) government spending. C) capital. D) current consumption.
Suppose that the nominal rate of interest is holding steady at 8 percent even as the anticipated rate of inflation rises. What is happening to the real rate of interest?
A) It is unchanged. B) It is increasing. C) It is decreasing. D) It equals the nominal interest rate.
Which of the following best explains why the aggregate expenditure curve gets higher as the price level drops?
a. Purchasing power increases.
b. The economy moves closer to equilibrium.
c. Planned investment decreases.
d. Government purchases are falling.
An increase in national income could by caused by which of the following?
A) an increase in depreciation B) an increase in personal taxes C) a decrease in personal income D) an increase in gross domestic product