Points to the left of the IS curve represent excess demand for goods
Indicate whether the statement is true or false
TRUE
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Kellogg's and General Mills are two of the dominant breakfast cereal manufactures in the U.S. Each firm can either sign or not sign an exclusive contract with an Olympian gold-medal athlete to appear on the cover of a cereal box
If both companies sign an athlete, they will each make $5 million in economic profit. If only firm signs, they earn $8 million in economic profit and the other firm incurs an economic loss of $1 million. If neither firm signs, they break even. Which of the following pairs of payoffs would NOT appear together in a square of the payoff matrix? A) $5 million; $5 million B) $0 million; $0 million C) $8 million; $5 million D) -$1 million; $8 million
Classical unemployment can be caused by which of the following?
A. Minimum wage laws B. Bargaining by unions C. Efficiency wages D. All these create classical unemployment.
An independent variable can be included in a regression model:?
A. ?when it affects y and is uncorrelated with all of the independent variables of interest. B. ?when it does not affect y and is uncorrelated with all of the independent variables of interest. C. ?when it affects y and is correlated with all of the independent variables of interest. D. ?when it does not affect y and is correlated with all of the independent variables of interest.
With expansionary monetary policy, investment, consumption, and net exports all ____________ which results in the AD curve shifting to the ____________ increasing real GDP and the price level.
Fill in the blank(s) with the appropriate word(s).