In a self-regulating economy, inflationary and recessionary gaps produce shifts of the

A) AD curve that maintain the short-run equilibrium point.
B) AD curve that move the economy to a long-run equilibrium point.
C) SRAS curve that maintain the short-run equilibrium point.
D) SRAS curve that move the economy to a long-run equilibrium point.


D

Economics

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Refer to Game Matrix V. Which of the following values of X and Y result in the only Nash Equilibrium being (Yes, Yes)?

Game Matrix V

The following questions refer to the game matrix below. Each firm has a choice of saying Yes or NO. The profits each gets depend upon which it chooses.



a. X = 21, Y = 9.
b. X = 19, Y = 11.
c. X = 21, Y = 11.
d. It is not possible for (Yes, Yes) to be a Nash Equilibrium.

Economics

The above figure shows a payoff matrix for two firms, A and B, that must choose between selling basic computers or advanced computers. Which of the following is a Nash equilibrium?

A) Both firms make advanced computers. B) Both firms make basic computers. C) Firm A makes basic computers and firm B makes advanced computers. D) There are no Nash equilibria.

Economics

If Slick Shades has a constant marginal cost of production equal to $80 and the distributors have a constant marginal cost of distribution equal to $30, what is the profit-maximizing number of sunglasses (in hundreds) for Slick Shades to produce?


The figure above shows the wholesale demand and marginal revenue curves for Slick Shades Sunglasses, a sunglasses firm with market power. Slick Shades Sunglasses has a constant marginal cost of production and it sells to perfectly competitive independent retail distributors that have a constant marginal cost of distribution.

A) 40
B) 80
C) 55
D) 60

Economics

If your marginal propensity to consume is 0.75 and you get an additional $400 in income, you would spend ___________ on consumption.

Fill in the blank(s) with the appropriate word(s).

Economics