Use the aggregate expenditures model and the following values to answer the next question.AMPCIGT$3500.75$400$400$200Determine equilibrium consumption for this economy.
A. $3,350
B. $3,200
C. $3,000
D. $2,850
Answer: B
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Answer the following statement(s) true (T) or false (F)
1. When both players have dominant strategies, there is only one Nash equilibrium. 2. The Battle of the Sexes game has two Nash equilibria, neither of which is Pareto optimal. 3. All outcomes in the Copycat Game are Nash equilibria. 4. A solution concept is any way of analyzing a game which leads to the discovery of a Nash equilibrium which solves the game. 5. The concept of Nash Equilibrium is an important solution concept because it helps make predictions.
If the economy experiences a negative supply shock, which of the following will be true?
A) Inflation will fall, and real GDP will fall. B) Inflation will rise, and real GDP will rise. C) Inflation will fall, and real GDP will rise. D) Inflation will rise, and real GDP will fall.
What special roles do the Budget Committees of the House of Representatives and the Senate play in creating fiscal policy?
What will be an ideal response?
A deposit outflow results in equal reductions in
A) loans and reserves. B) assets and liabilities. C) reserves and capital. D) assets and capital.