Figure 11-1
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In Figure 11-1, the slope of the expenditures schedule is 0.75, and the government wishes to achieve full employment. It should
A. cut spending by 1,000.
B. increase spending by 1,000.
C. cut taxes by 1,000.
D. increase spending by 250.
E. cut taxes by 250.
Answer: D
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Which of the following statements about economic resources is true?
A) Economic resources include financial capital and money. B) All economic resources are man-made. C) Economic resources are also called factors of production. D) Economic resources are used only by businesses.
The difference between a Nash equilibrium strategy and a dominant strategy is:
a. nothing; they are synonymous. b. the former is stable but the latter is unstable. c. the former must be a best response to all others' strategy profiles, whereas the latter need only be a best response to others' Nash equilibrium strategies. d. the former need only be a best response to others' Nash equilibrium strategies, whereas the latter must be a best response to all others' strategy profiles.