Given the aggregate demand curve, a beneficial supply shock will:
a. increase potential output and the price level
b. decrease potential output and the price level.
c. increase potential output and decrease the price level.
d. decrease potential output and increase the price level.
e. cause no change in potential output or the price level.
c
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A Nash equilibrium ______
A. is the outcome that delivers maximum economic profit B. is the outcome in which each player takes the best action given the other player's action C. changes each time the game is played D. is the best possible outcome for the two players
Which of the following is an obstacle to economic development?
A) poorly defined property rights B) foreign direct investment C) immigration D) openness to trade
The theory that there is no predictable trends in securities prices is the
A) opportunity cost of capital. B) random walk theory. C) capital reinvestment. D) present value.
The invention of machinery that can double the amount of gold extracted from raw ore will likely lead mining companies to
a. raise the world price of gold to pay for the new machinery. b. lower the world price of gold because any amount can now be produced more cheaply. c. raise the world price of gold because miners' wages must double as their productivity doubles. d. lower the world price of gold only if new mining companies are not allowed to enter the industry.