Any dominant equilibrium implies:
a. a sequential game
b. instability
c. a price-taking equilibrium
d. a Nash equilibrium
d
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In response to an unanticipated easing of monetary policy, output ________ at first, then ________ after about four months
A) rises; returns most of the way to its original value B) falls; returns most of the way to its original value C) remains roughly unchanged; rises significantly D) remains roughly unchanged; falls significantly
During the course of the twentieth century, the average workweek in the United States has gotten shorter and Americans have enjoyed greater amounts of leisure time. How has this development affected potential GDP and labor productivity?
What will be an ideal response?
The marginal propensity to save is the change in saving divided by the change in:
a. Consumption b. Investment c. Income d. Debt
A firm is considering an investment that will cost $2 million today and $2 million a year from now. It will generate revenues of $1 million a year for five years, beginning two years from now. If the interest rate is 10 percent, the firm should
A) not make the investment because the present value of the net revenues is less than the present value of the investment spending. B) not make the investment because the present value of the net revenues is less than $4 million. C) make the investment because the present value of the net revenues is greater than the present value of the investment. D) make the investment because the project will generate a net profit of $1 million.