The outcome of the game in the figure show predicts that Nike will earn profits of:

Real GDP is not a perfect indicator of economic welfare because ________

A) it includes the underground economy B) it includes a direct measure of health and life expectancy C) it underestimates inflation D) economic welfare depends on many factors not measured or not measured accurately by real GDP

The real business cycle model begins with the assumption that ________

A) wages and prices are sticky B) wages and prices are completely flexible C) the velocity of money is a constant D) nominal variables are superior to real variables in describing economic activity