Other things equal, an improvement in the expected rate of net profit would:
A. Reduce the price level and unemployment
B. Decrease the interest rate and cause aggregate demand to increase
C. Increase consumption and net exports, causing aggregate demand to shift rightwards
D. Increase investment spending, real GDP, and the price level
D. Increase investment spending, real GDP, and the price level
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How has the severity and duration of business cycles changed over time in the United States?
What will be an ideal response?
When the economy is operating at potential GDP, the rate of inflation is
A. rising. B. zero. C. falling. D. neither rising nor falling.
According to your text, controversies about negative externalities are almost always conflicts between the legitimate expectations of citizens and the
A) desire of individuals for greater profits. B) desire of politicians to be reelected. C) legitimate expectations of other citizens. D) mindless urge for more material goods. E) strident demands of environmentalists.
According to the matrix shown, the outcome of the "game" will be:
This prisoner's dilemma game shows the payoffs associated with two firms, A and B, in an oligopoly and their choices to either collude with one another or not.
A. both firms will collude and act like a joint monopolist.
B. both firms will compete.
C. Firm A will compete and Firm B will collude.
D. Firm B will compete and Firm A will collude.