Recent research up to the crisis proceeded mainly on three fronts. Discuss each of them
What will be an ideal response?
New classical: the extent to which fluctuations in output are explained by movements in the natural level of output. New Keynesian: exploring the nature of market imperfections and nominal rigidities and the extent to which they can explain fluctuations in output. New Growth theory: examines the determinants of technological progress and the implications of increasing returns to scale for economic growth.
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Bill and Bev are playing the ultimatum game, starting with $50 . A coin flip results in Bev being the one to propose a division of the $50 . If Bev acts as economic theory assumes, she should propose that
a. she gets $30 and Bill gets $20. b. she gets $25 and Bill gets $25. c. she gets $24 and Bill gets $26. d. she gets $49 and Bill gets $1.
Which of the following is true about the demand curve for a monopolistically competitive firm??
A. ?It is less elastic (steeper) than for monopoly, but more elastic (flatter) than for a perfectly competitive firm. B. ?It is less elastic (steeper) than the demand curve for either a monopoly firm or a perfectly competitive firm. C. ?It is more elastic (flatter) than the demand curves for either a monopoly firm or a perfectly competitive firm. D. ?It is less elastic (steeper) than for a perfectly competitive firm, but more elastic (flatter) than for a monopoly firm.
In March of 2014, China's official holdings of foreign exchange reserves
A. rose to $4 trillion. B. fell to $2 trillion. C. rose to almost $7 trillion. D. fell to below $1 trillion.
For a given market demand curve, if the market clearing price increases, then the amount of producer surplus will
A. become negative. B. increase. C. decrease. D. None of these due to insufficient information.