In the scenario above, in Nash equilibrium
A) both firms cheat to produce more than the agreed amount.
B) both firms comply with the agreement.
C) one firm complies with the agreement while the other cheats to produce more than the agreed amount.
D) both firms cheat to produce less than the agreed amount.
A
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Along an actual (observed) Phillips curve,
A. aggregate output varies inversely with the unemployment rate. B. aggregate output directly inversely with the inflation rate. C. the inflation rate varies inversely with the unemployment rate. D. the inflation rate varies directly with the unemployment rate.
Assume the price of good X is Px, price of good Y is Py, and B is the budget. The formula for the budget line for these two goods is:
a. PyQy / PxOx. b. PxB + PyB = B. c. PxX + PyY = B. d. (1 ? Py / B) Px.