Technological change and labor productivity are negatively related

If firms in a duopoly with homogeneous products compete on price, a Nash equilibrium is reached when each firm charges a price ________

A) equal to its average cost B) higher than its average cost C) equal to its marginal cost D) lower than its marginal cost

If the Fed raises the interest rate, this will ________ inflation and ________ real GDP in the short run

A) reduce; lower B) reduce; raise C) increase; raise D) increase; lower