In game in Scenario 13.8, what will occur if IVY Corp plays a maximin strategy?
A) $1, $10
B) $1, -$5000
C) $2, $0
D) $2, $2
E) There is a .25 chance of each outcome in that case.
C
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On which type of unemployment can monetary policy have the most effect? Why?
What will be an ideal response?
If you were told the MPC was = 0.75 and the government engaged in a tax decrease of $400B, then the initial change in GDP would be:
A. $400B. B. $1600B. C. $300B. D. $1200B
Long-lived goods used for producing other goods and services are called:
A. consumption goods. B. capital goods. C. value-added goods. D. non-market goods.
What happens in the long run after an increase in government spending growth?
A. Inflation expectations adjust and the SRAS curve shifts backwards. B. The AD curve remains permanently in its new position. C. The LRAS curve shifts out to match the increase in AD. D. The AD curve shifts back to its original position.