Which of the following explains why a $100 billion reduction in consumption spending might decrease equilibrium real GDP by more than $100 billion?
a. Say's law.
b. The quantity theory of money.
c. Flexible resource prices.
d. The multiplier principle.
d
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Tracy and Amy are playing a game in which Tracy has the first move at X in the decision tree shown below. Once Tracy has chosen either the top or bottom branch at X, Amy, who can see what Tracy has chosen, must choose the top or bottom branch at Y or Z. Both players know the payoffs at the end of each branch. 
In the equilibrium of this game:
A. Tracy and Amy both get 125. B. Tracy gets 25 and Amy gets 225. C. Tracy gets 300 and Amy gets 200. D. Tracy gets 75 and Amy gets 150.
A price searcher who determines selling prices by adding some standard percentage to margin, cost
What will be an ideal response?
If a 20 percent increase in the price of a used car results in a 10 percent decrease in the quantity of used cars demanded, then the demand for used cars is
A) elastic. B) inelastic. C) unit elastic. D) arc elastic.
By definition, M1 includes
a. savings accounts b. money market mutual accounts c. repurchase agreements d. small denomination time deposits e. travelers' checks