When there is a recessionary gap, inflation will ________, in response to which the Federal Reserve will ________ real interest rates, and output will ________.
A. decline; lower; decline
B. increase; raise; decline
C. decline; lower; expand
D. decline; raise; decline
Answer: C
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In the above figure, an increase in productivity
A) shifts the supply curve from S to S1. B) shifts the supply curve from S to S2. C) results in a movement from point a to point b. D) results in a movement from point b to point a. E) has no effect.
Refer to the payoff matrix below. In reference to the Nash equilibrium/equilibria in this game, which of the following is true?
Cruise R Us and Cruise the World compete in the cruise line industry. Each firm needs to determine if they are going to offer special cruise packages with special rates or not offer the specials. The above payoff matrix shows the firms' net economic profit for each set of strategies.
A) There are two Nash equilibria in this game.
B) There is one Nash equilibrium in this game.
C) There are three Nash equilibria in this game.
D) There are no Nash equilibria in this game.
Suppose a negative income tax program is established at 25 percent, and a poverty threshold minimum of $15,000 is guaranteed for a family of four. If no income is earned by this family, its total income would equal
a. $6,000 b. $15,000 c. $18,750 d. $60,000 e. $3,750
Rising interest rates can cause crowding out, but they are also the result of crowding out.
Answer the following statement true (T) or false (F)