One argument in favor of activist monetary policy is that the economy does not always equilibrate quickly enough at Natural Real GDP

Indicate whether the statement is true or false


True

Economics

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Steve owns a motorcycle valued at $5,000, and that is his only asset. There is a 5 percent chance that Steve will have an accident within a year. If he does have an accident, his motorcycle is worthless

Steve's utility of wealth curve is shown in the figure above. An insurance company agrees to pay Steve the full value of his motorcycle in case of an accident if he buys the company's insurance policy. The company's operating expenses are $500 per policy. With no insurance, Steve's expected wealth is A) $4,000. B) $4,500. C) $3,500. D) $5,000.

Economics

What is meant by the prisoners' dilemma? Do the players in the prisoner's dilemma game have a dominant strategy?

What will be an ideal response?

Economics

The sum of the marginal utilities of a good, at any consumption level

a. cannot be measured b. adds up to total utility c. adds up to maximum utility d. is negative because of the law of diminishing marginal utility e. is zero because marginal utility eventually becomes negative, canceling the positive values of marginal utility

Economics

The general shape of the aggregate supply curve is

a. downward sloping. b. upward sloping. c. vertical. d. horizontal.

Economics