Suppose the U.S. dollar gains strength against the euro (and against other major currencies). This strengthening of the dollar will cause which of the following to occur?
A) The aggregate demand curve will shift to the right and the short-run aggregate supply will shift to the right.
B) The aggregate demand curve will shift to the left and the short-run aggregate supply will shift to the right.
C) The aggregate demand curve will shift to the right and the short-run aggregate supply will shift to the left.
D) the aggregate demand curve will shift to the left and the short-run aggregate supply will shift to the left.
B
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What is the reason that stabilization policies do NOT have an immediate effect on an economy?
A) Consumers are slow to catch up on spending. B) Imports come into the country too fast. C) Exports often are not shipped fast enough. D) There is a time lag for policies to take effect.
A mixed strategy in which positive probability is placed on more than one action can be a best response to another player's strategy only if the expected payoff from playing the pure strategies (over which the individual is mixing) is the same.
Answer the following statement true (T) or false (F)
Competitive market equilibrium is a market equilibrium with many buyers and sellers
Indicate whether the statement is true or false
The equilibrium price is the price
A. suppliers agree to charge. B. where there are surpluses and shortages. C. at which quantity supplied equals quantity demanded. D. from which there is always a tendency to move away.