Prices Usually Adjust Fairly Slowly; the Speed of Price Adjustment

question 34

Multiple Choice

Prices usually adjust fairly slowly; the speed of price adjustment can be summarized by

• A)the Phillips curve
• B)the AD-curve
• C)the long-run AS-curve
• D)the output gap
• E)the trend path of GDP

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Definitions:

Battle of the Sexes

A game theory model illustrating coordination problems through the preferences of two individuals trying to agree on a common decision with conflicting interests.

Maximin Strategies

Decision-making strategies aimed at maximizing the minimum payoff attainable, commonly used in games and economic scenarios where uncertainty is a significant factor.

Repetition of a Game

In game theory, it refers to playing the same strategic game multiple times, which can impact the strategies and outcomes over time.

Axelrod's Experiments

A series of computer tournaments designed by Robert Axelrod to examine strategies in the iterated prisoner's dilemma.