A rise in aggregate expenditure is always
a. smaller than the rise in income that causes it
b. larger than the rise in income that causes it
c. the same as the rise in income that causes it
d. smaller than the increase in consumer spending that causes it
e. smaller than investment spending
A
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Refer to Figure 17-2. Suppose the Fed used contractionary policy to push short-run equilibrium to point C. If the short-run equilibrium remained at point C long enough,
A) the economy would move back to point A. B) the economy would stay at point C in the long run. C) the short-run Phillips curve would shift down. D) the short-run Phillips curve would shift up.
Displayed below is the payoff matrix of firm B for four different strategies, B1, B2, B3, and B4, and the potential retaliatory responses of firm A (A1, A2, A3, A4).Table 12-2 ? B1 B2 B3 B4 A1 100 50 25 200 A2 10 60 150 150 A3 50 75 200 75 A4 70 90 250 15 If firm B uses the maximin criterion, which strategy will it choose? ?
A. B1 B. B2 C. B3 D. B4