The economy's self-correcting mechanism
a. tends to push unemployment toward a specific point called the natural rate of unemployment.
b. works better at correcting inflationary gaps than recessionary gaps.
c. cannot work if the Phillips curve is vertical.
d. ensures that the economy will not have to endure a long period of high unemployment.
a
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An economy can achieve faster economic growth without ______
A. markets and property rights B. people being willing to save and invest C. incentives to encourage the research for new technologies D. an increase in the population growth rate
In the money market, an excess demand for money is equivalent to an excess demand for bonds
Indicate whether the statement is true or false
The following economy produces two products.ProductsProduction Possibilities?ABCDEFTanks012345Autos10009508506503500Refer to the above table. The opportunity cost of each additional tank in terms of autos:
A. remains constant. B. increases as more tanks are produced. C. falls as more tanks are produced. D. cannot be measured because there is no currency.
This prisoner's dilemma game shows the payoffs associated with two firms, A and B, in an oligopoly and their choices to either collude with one another or not.
According to the matrix shown, the firms:
A. both have a dominant strategy. B. both have an incentive to compete. C. both have an incentive to renege on collusion. D. All of these statements are true.