If the economy is operating at an output level beyond its full-employment capacity, which of the following would most likely direct the economy back to long-run equilibrium?
a. improvements in technology
b. a decrease in the real rate of interest
c. an increase in resource prices
d. a decrease in resource prices
C
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Which one of the following would shift the aggregate demand curve to the left?
A) an increase in the money supply B) an increase in exports C) an increase in taxes D) an increase in government spending
Under autarky, domestic producer surplus is represented by the area
A) above the supply curve and below the equilibrium price. B) above the demand curve and below the supply curve. C) above the supply curve and below the demand curve. D) below the demand curve and above the equilibrium price.
In the period 1980-92, United States net national saving fell due to
A) large budget deficits and an increase in private saving. B) small budget deficits and a decrease in private saving. C) small budget deficits and an increase in private saving. D) large budget deficits and a decrease in private saving.
What is true about threats in the game in Scenario 13.15?
A) Simple can change the equilibrium by means of a credible threat; Boring cannot. B) Boring can change the equilibrium by means of a credible threat; Simple cannot. C) Boring can change the equilibrium by means of a credible threat only if it can move before Simple. D) Simple can change the equilibrium by means of a credible threat only if it can move before Boring. E) Neither firm has a credible threat with which to change this equilibrium.