New growth theory supports the idea thatI.economic growth can continue as long as we keep finding new ideas.II.increases in human capital can lead to greater rates of economic growth.

Assume a simple macroeconomic model. When inventories rise unexpectedly,

A. income is above its equilibrium value. B. income will rise until it reaches its equilibrium value. C. total spending is higher than total output. D. total output is less than spending.

A prisoner's dilemma is a game in which:

A. the players' payoffs are larger when both play their dominant strategy compared to when both play a dominated strategy. B. neither player has a dominant strategy. C. the players' payoffs are smaller when both play their dominant strategy compared to when both play a dominated strategy. D. one player has a dominant strategy and the other does not.