Assume the economy is at full employment. Which of the following would you expect if oil prices suddenly decreased?
a. A recession
b. A decrease in employment below its full-employment level
c. An economic contraction
d. A technological breakthrough
e. An increase in employment above its full-employment level
E
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In a two-player simultaneous game where neither player has a dominant strategy,
A) there is never a Nash equilibrium. B) there is only one Nash equilibrium. C) the actual outcome is unpredictable. D) the actual outcome will not be a Nash equilibrium.
Headline inflation:
A. measures the changes in prices for the entire market basket of the average urban consumer. B. is inflation measured using the producer price index. C. measures price changes with food and energy costs taken out of the basket. D. is inflation measured using the retail price index.