In an ultimatum game where the payoff totals $100 and is split in $1 increments, the rational amount for the proposer to offer and the responder to take is
A) $0.
B) $1.
C) $50.
D) $100.
B
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Picture the production possibilities curve shifting out, year after year, but the shifts are not necessarily the same. This picture is at the heart of the _______ explanation of the twists, turns, and spurts of economic growth
a. market theorists b. housing cycle c. innovations cycle theorists d. real business cycle theorists e. internal cycle theorists
??Exhibit 16A-2 Macro AD/AS Models
?
As shown in Panel (a) of Exhibit 16A-2, assume the economy adopts a classical nonintervention policy. Which of the following would cause the economy to self-correct?
A. ?Competition among firms for workers increases the nominal wage and SRAS shifts rightward. B. ?Long-run equilibrium will be established at Y1 and P2. C. ?Long-run equilibrium will be established at Y1 and P3. D. ?Competition among unemployed workers decreases nominal wages and SRAS shifts rightward.