Assuming that firms maximize profits, how will the price and output policy of an unregulated monopolist compare with ideal market efficiency?
a. The output of the monopolist will be too large and the price too high.
b. The output of the monopolist will be too large and the price too low.
c. The output of the monopolist will be too small and the price too high.
d. The output of the monopolist will be too small and the price too low.
C
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Suppose two companies, Macrosoft and Apricot, and considering whether to develop a new product, a touch-screen t-shirt. The payoffs to each of developing a touch-screen t-shirt depend upon the actions of the other, as shown in the payoff matrix below (the payoffs are given in millions of dollars). 
If Macrosoft and Apricot make their decision at the same time, then which of the following statements is correct?
A. The game has more than one Nash equilibrium. B. The game does not have a Nash equilibrium. C. The only Nash equilibrium is that both develop a touch-screen t-shirt. D. The only Nash equilibrium is that neither develops a touch-screen t-shirt.
What is the short-run effect of increased deficit spending on an economy experiencing a recessionary gap?
A) Aggregate demand will increase, creating an inflationary ga
Assume the real U.S. GDP in 1997 was $7,269 billion and the U.S. population was 268 million, and the real U.S. GDP in 1998 was $7,552 billion and the U.S. population was 270 million. From 1997 to 1998, the per capita real GDP
A. Remained unchanged. B. Increased. C. Decreased. D. Cannot be determined from the information given.
If the Fed lowers its target for the federal funds rate, this indicates that
a. the Fed is pursuing an expansionary monetary policy. b. the Fed is pursuing a contractionary monetary policy. c. the Fed is attempting to combat inflation. d. the Fed is concerned that the growth in aggregate demand will exceed potential GDP.