In Figure 10-5 above, suppose that a "neutral" technological improvement occurs. This causes a movement of the steady-state point such as from points

To increase the level of output, the Fed should conduct an open market sale

Indicate whether the statement is true or false

A collusive agreement between two duopolists is similar to the prisoners' dilemma because in both games

A) the best outcome is always achieved. B) each players strategy depends on what the other player does. C) the Nash equilibrium is not the best outcome for the players. D) All of the above answers are correct.