When can backward induction be used to arrive at the equilibrium for a game?
What will be an ideal response?
Backward induction can be used to find the equilibrium in games where players move sequentially. Backward induction involves starting at the end of the game and solving backwards to arrive at the equilibrium.
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A taxcredit fora clean fuel vehicle
a. acts as a subsidy to encourage consumption, by increasing the MPB b. can be modeled as a shift up of the MEB c. is represented as a shift down of the MPB by the amount of the tax credit d. raises the effective price of the vehicle, discouraging consumption
If policymakers deem inflation as being too high, then the policy response should be monetary ________, which shifts aggregate demand______.
A. easing; a left B. easing; right C. tightening; left D. tightening; right
A unit of output whose production and sale adds less to cost than it generates in additional revenue is
A) a profitable unit to produce and sell if marginal cost declines with additional output. B) a profitable unit to produce and sell if total receipts exceed total costs. C) a profitable unit to produce and sell unless it must be sold at a price below average unit cost. D) a profitable unit to produce and sell.
If the government owes $10.0 trillion and then borrows $700 billion more this year, this leads to
What will be an ideal response?