Refer to the figure below. What is the Nash equilibrium of this game?
A. A chooses Up, B chooses Right
B. A chooses Up, B chooses Left
C. A chooses Down, B chooses Left
D. A chooses Down, B chooses Right
Answer: B
Economics
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OLI theory is a direct contradiction of trade theory, especially trade theory based on comparative advantage
Indicate whether the statement is true or false
Economics
In the RBC model, supply shocks
A) are always favorable by definition, but come at irregular intervals. B) are always adverse by definition, but come at irregular intervals. C) alternate between favorable and adverse shocks. D) follow demand shocks with the opposite effect on output.
Economics