Actions that are taken to influence the beliefs or actions of rivals in favorable ways are
A. secure strategies.
B. mixed strategies.
C. pure strategies.
D. strategic moves.
Answer: D
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Based on the figure below. Starting from long-run equilibrium at point C, a tax cut that increases aggregate demand from AD to AD1 will lead to a short-run equilibrium at point ________ and eventually to a long-run equilibrium at point ________, if left to self-correcting tendencies.
A. D; C B. B; C C. B; A D. D; B
Using Figure 2 below, suppose that the economy started at PAE2. A potential change that could cause the economy to go from PAE2 to PAE3 might be:
A. consumption spending increases. B. investment decreases. C. imports increase. D. exports decrease.
When a household owns shares of stock, _____
a. it has ownership rights in that firm b. it is entitled to the majority of the firm's profits c. it is liable to bear the entire loss faced by the firm d. it can consume the firm's products without paying for it e. it is responsible for correcting any defect in the product identified by the customers
Econometrics is the use of statistics to _____ economic models
a. quantify and test b. try to disprove c. avoid the use of d. create e. simulate