If the stores could co-operate, what is the new Nash equilibrium?
a. Megastore $95 and Superstore $80
b. Megastore $305 and Superstore $55
c. Megastore $65 and Superstore $285
d. Megastore $165 and Superstore $115
d
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Discretionary fiscal policy is so named because it
A) is undertaken at the order of the nation's central bank. B) involves specific changes in taxes and government spending undertaken by Congress and the president. C) occurs automatically as the nation's level of GDP changes. D) involves secret advice given by the Council of Economic Advisers to the president.
When a government chooses to have a zero deficit with regard to revenues and spending, it is operating with what kind of budget?
A) a slow economy budget B) a balanced budget C) a conservative budget D) a taxpayer-based budget
Which of the following is not a result of rent controls?
a. reduced incentives to build new rental housing b. reduced incentives for landlords to keep rental units in good repair c. increased discrimination against people deemed undesirable on the part of landlords d. increased turnover as tenants move more frequently from one rental unit to another
After a price decrease for good X, the new consumer equilibrium level of good X will be:
A. lower than before the price change. B. indeterminate without more information. C. the same as before the price change. D. higher than before the price change.