Equilibrium in the long run occurs when:
A. AD intersects the short-run AS, regardless of output level
B. AD intersects the short-run AS, regardless of price level
C. AD intersects the short-run and the long-run AS curves at the same point
D. The short-run AS curve intersects the long-run AS curve
C. AD intersects the short-run and the long-run AS curves at the same point
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Suppose this is a repeated game where the firms adopt a trigger strategy. What would the trigger strategy look like?
a. Charge low prices until he charges a high price, and then match b. Charge high prices until he charges a low price, then match c. Charge a high price till he charges a high price, then charge a low price d. Charge a low price till he charges a low price, then charge a high price
In the shortrun (specificfactors) model, foreign direct investment is expected to cause a(n) ________ in the production of the capitalintensive good and a(n) ________ in the production of the landintensive good in the receiving country
a. decrease; decrease b. increase; decrease c. decrease; increase d. increase; increase
Both minivan sales and birth rates are on the rise. The conclusion that minivans cause people to have children is an example of making the mistake of:
A. reverse causality. B. omitted variables. C. correlation without causation. D. extrapolation.
A currency drain is
A) when the Fed buys securities, but it is not when the Fed sells securities. B) when the Fed raises the required reserve ratio. C) an increase in currency held outside banks. D) when the Fed either buys or sells securities. E) when the Fed sells securities, but it is not when the Fed buys securities.