In the long run, an increase in the money supply growth rate
a. raises expected inflation so the short-run Phillips curve shifts right.
b. raises expected inflation so the short-run Phillips curve shifts left.
c. reduces expected inflation so the short-run Phillips curve shifts left.
d. None of the above is correct.
a
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In a repeated game, deterring entry
A) is not possible. B) is not a rational strategy if money is lost fighting the first potential entrant. C) may require losing money fighting the first potential entrant. D) cannot form a subgame perfect Nash equilibrium.
Which of the following is not potentially a barrier to entry into a product market?
a. patent protection on the design of the product b. the absence of economies of scale in the product market c. government licensing of the product's producers d. the control of a crucial input necessary to produce the product
In the United States, if the price of imported oil rises so that the prices of gasoline and heating oil rise, then the
a. GDP deflator rises much more than does the consumer price index. b. consumer price index rises much more than does the GDP deflator. c. GDP deflator and the consumer price index rise by about the same amount. d. consumer price index rises slightly more than does the GDP deflator.
Individual states engage in their own industrial policy, which can involve states competing with one another by offering special inducements to attract industry and jobs
Indicate whether the statement is true or false