Economics
5th Edition
ISBN: 9781319066604
Author: Paul Krugman, Robin Wells
Publisher: Worth Publishers
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Question
Chapter 28, Problem 7P
To determine
Concept Introduction:
Expansionary Fiscal Policy: This policy is followed by the government to expand the production activities in the economy. This is done by increasing the expenses and cutting the earnings of the government.
Contractionary Fiscal Policy: This policy is followed by the government to contract the production activities in the economy. This is done by reducing the expenses and increasing the earnings of the government.
Inflationary gap: At the level of full employment, if the value of the real
Recessionary gap: At the level of full employment, if the value of the potential GDP is greater than the value of the real GDP, it leads to emergence of recessionary gap.
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refer to exhibit 8.12 and identify each curve in the graph
Q1. (Chap 1: Game Theory.)
In the simultaneous games below player 1 is choosing between Top and Bottom, while player 2 is choosing between Left and Right. In
each cell the first number is the payoff to player 1 and the second is the payoff to player 2.
Part A:
Player 1
Top
Bottom
Player 2
Left
25, 22
Right
27,23
26,21
28, 22
(A1) Does player 1 have a dominant strategy? (Yes/No) If your answer is yes, which one is it? (Top/Bottom)
(A2) Does player 2 have a dominant strategy? (Yes/No.) If your answer is yes, which one is it? (Left/Right.)
(A3) Can you solve this game by using the dominant strategy method? (Yes/No) If your answer is yes, what is the solution?
not use ai please
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