Game theory is used to explain the pricing behavior of

Which of the following is likely to shift the production possibilities curve of a nation rightward?

A) An increase in the education and experience of the workforce B) An increase in the demand for the nation's exports C) An improvement in the terms of trade that the nation faces D) An increase in the price of raw materials used by the nation

Which of the following is TRUE regarding the quantity theory of money?

I. The theory predicts that in the long run the inflation rate equals the money growth rate minus the growth rate of real GDP. II. The theory predicts that countries with high growth rates of money will have high inflation rates. III. The theory predicts that increases in the growth rate of velocity lowers the inflation rate. A) I and II B) II and III C) I and III D) I, II and III