If decision makers adjust fully to demand stimulus policies, persistent expansionary macro-policy will lead to
a. inflation with no lasting reductions in unemployment.
b. a permanent reduction in unemployment.
c. lower interest rates.
d. more rapid economic growth.
A
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In a duopoly with a collusive agreement and in a one-time only game, a firm's profit is largest if it ________ the agreement and if the other firm ________ the agreement
A) complies with; complies with B) complies with; cheats on C) cheats on; complies with D) cheats on; cheats on
The government can aid in reducing pollution by using a policy of cap-and-trade, which means that
A) polluters are taxed on the amount of pollution they discharge. B) emission charges are established by the government. C) each polluter is assigned a pollution limit and is given tradable permits that allow this amount of pollution. D) only some producers pollute and the others go out of business.