If the economy is in a recession, in an effort to move the economy to the long-run equilibrium, the government could:
A. decrease spending to increase aggregate demand.
B. decrease spending to decrease aggregate demand.
C. increase spending to increase aggregate demand.
D. increase spending to decrease aggregate demand.
Answer: C
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In a three-player game, a Nash equilibrium exists when all players are playing their best response to one another
Indicate whether the statement is true or false
Banks in the Diamond-Dybvig model can offer depositors increased liquidity because
A) both individual depositors' liquidity needs and average depositor liquidity needs are predictable. B) while individual depositors' liquidity needs are unpredictable, average depositor liquidity needs are predictable. C) while individual depositors' liquidity needs are predictable, average depositor liquidity needs are unpredictable. D) neither individual depositors' liquidity needs nor average depositor liquidity needs are predictable.
The total amount of income in a society is independent of how income is distributed
a. True b. False Indicate whether the statement is true or false
In the circular flow diagram, households supply __________ to business firms.
Fill in the blank(s) with the appropriate word(s).