Refer to Figure 7.1. Suppose the city passes an ordinance banning loud music, and this directly impacts Angus's legal ability to play his bagpipes. The payoffs in the lower-right cell of the payoff matrix would change to

The marginal revenue product of an input is the marginal physical product times the price per unit of output under perfect competition.

Answer the following statement true (T) or false (F)

The self-correcting tendency of the economy means that rising inflation eventually eliminates:

A. unemployment. B. exogenous spending. C. recessionary gaps. D. expansionary gaps.