Suppose that a large country imposes optimal tariffs on imports from another large country. The second country then responds with optimal tariffs on imports from the first country. For these two countries, the Nash equilibrium results in ___________ for the first country and __________ for the second country.

The quantity of money is $1 billion, the price level is 1.10, and real GDP is $10 billion. What is the velocity of circulation?

What will be an ideal response?

Which of the following would be counted as investment when calculating gross domestic product?

a) the purchase of a used computer by an auto manufacturer b) the purchase of a share of IBM stock by an employee c) the construction of a new house d) the construction of roads by the government e) the profit earned when selling shares of stock