In the short run, policy that changes aggregate demand changes
a. both unemployment and the price level.
b. neither unemployment nor the price level.
c. only unemployment.
d. only the price level.
a
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Kyle and Stan are playing Odds or Evens, where Kyle is designated as the "odd" player and Stan is designated as the "even" player. They decide to play the game 10 times. If Stan plays his ideal mixture, Kyle's expected payoff is zero w
A) plays a pure strategy of "shoot 1." B) plays a pure strategy of "shoot 2." C) plays his ideal strategy. D) All of the above are correct.
When two firms in a perfectly competitive market seek to maximize profit in the long run, they eventually end up:
A) producing at a suboptimal level. B) minimizing total cost of production. C) earning the same level of profits. D) producing the same level of output.
Refer to the Article Summary. Explain how the declining labor force could have led to the decrease in the unemployment rate
What will be an ideal response?
A characteristic of an efficient market is that
A) prices are equal for all securities. B) bid-asked spreads are large. C) prices reflect all available information. D) all investors receive a positive rate of return.