What is the drawback of analyzing only one round of effects and leaving the feedback effects unobserved?
a. Not all three markets will be analyzed.
b. The qualitative effect might be offset by feedback effects.
c. The quantitative effect might be overestimated or underestimated.
d. All of the above
.C
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In 2008, a former Intel engineer has been charged with stealing trade secrets worth $1 billion. Intel owns 90 percent of the worldwide market for microprocessors, AMD has the rest
Conducting R&D is very expensive so suppose that each of these firms can either steal R&D or develop their own R&D. If both firms develop their own R&D, economic profit will be $50 million each. If one company steals R&D, that firm earns $100 million in economic profit while the other firm earns $10 million. If both firms steal R&D, each firm breaks even. What is NOT true about this game? A) The outcome will not be a dominant strategy equilibrium. B) A strategy is to steal R&D. C) A firm will make more profit if it steals R&D. D) A strategy is to conduct R&D.
If actual inflation is greater than expected inflation, what is the relationship between the actual real wage and the expected real wage?
A) The actual real wage will be equal to the expected real wage. B) The actual real wage will be lower than the expected real wage. C) The actual real wage will be higher than the expected real wage. D) The relationship between the actual real wage and the expected real wage cannot be predicted.