The above figure shows the reaction functions for two pizza shops in a small isolated down. The Stackelberg leader will produce

The rational expectations hypothesis indicates that people

a. pay little attention to policy when forming their expectations about the future. b. expect the next period to be pretty much like the recent past, regardless of policy changes. c. will always be able to forecast the future accurately. d. change their expectations about the future if policy changes.

The rules established under GATT are enforced by the

a. governments of the nations that are involved in GATT. b. North American Free Trade Association. c. World Trade Organization. d. European Union.