If the payoff to the United States to pursuing nuclear weapons is 100 if the USSR does not pursue nuclear weapons and 50 if the USSR does, and the payoff to the USSR to pursuing nuclear weapons is 80 if the USA doesn't pursue nuclear weapons and 30
if the USA does, what is the non-cooperative equilibrium? A) The USA pursues nuclear weapons, the USSR does not.
B) The USA pursues nuclear weapons, the USSR pursues nuclear weapons.
C) The USA does not pursue nuclear weapons, the USSR does not pursue nuclear weapons.
D) The USA does not pursue nuclear weapons, the USSR does pursue nuclear weapons.
B
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The proposition that in the long run when real GDP equals potential GDP, an increase in the quantity of money leads to an equal percentage increase in the price level is the called the quantity theory of
A) constant velocity. B) the long run. C) money. D) inflation. E) equal change.
Which of the following might cause the inflation rate to spike up sharply?
(A) Prices on world oil markets rise steeply due to war in the Middle East. (B) Plentiful rainfall and moderate temperatures result in good harvests of wheat and soybeans. (C) The purchasing power of the average consumer decreases due to a sluggish economy. (D) The items in the CPI market basket change to account for changing consumer buying habits.