If an Economist Argues That Equilibrium Output Differs from Potential

question 34

Essay

If an economist argues that equilibrium output differs from potential output,is that economist most likely a Keynesian or Classical economist?

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Definitions:

Nash Equilibrium

A concept in game theory where no participant can gain by a unilateral change of strategy if the strategies of the others remain unchanged.

Simultaneous Move Games

Games in game theory where players make their decisions at the same time without knowing the choices of the other players.

Sequential Move Games

A type of strategic game in game theory where players make decisions or moves one after another in a predefined order.

Antitrust Laws

Legislation intended to promote competition and prevent monopolies by regulating anti-competitive conduct among businesses.