Figure 112 Shows the Relationship Between the Price Level and Real

question 142

Multiple Choice

Figure 11.2 shows the relationship between the price level and real GDP.Which of the following would be the result of an increase in government purchases?

• A)A movement from Q3 to Q2
• B)A movement from e' to e*
• C)A movement from e" to e*
• D)A movement from Q2 to Q3
• E)A movement from Q1 to Q3

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Definitions:

Dominant Strategy

In game theory, a strategy that always results in the most favorable outcome for a player, regardless of what the opposition does.

Nash Equilibrium

A concept in game theory where no player can benefit by changing strategies while the other players keep their strategies unchanged.

Maximin Strategy

A decision-making rule used in game theory and statistics to maximize the minimum gain that can be achieved.

Dominant Strategy

In game theory, a strategy that is best for a player regardless of the strategies chosen by other players in the game.