The Graph Shown Displays Various Economic Outcomes

question 86

Multiple Choice

The graph shown displays various economic outcomes. If the economy is currently at equilibrium B, and the government does nothing, then eventually:

• A) SRAS will shift to the right, and the economy will have Y ₃ output with lower prices.
• B) SRAS will shift to the left, and the economy will experience stagflation.
• C) LRAS will shift to the left until equilibrium is reached.
• D) AD will shift to the right, restoring long-run equilibrium.

Understand the concept of game theory and its applications.

Identify dominant strategies in various game setups.

Recognize conditions for Nash equilibria in pure and mixed strategies.

Analyze the strategic interactions in different scenarios including public goods provision and pollution control.

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Definitions:

Negative Reinforcer

A stimulus that, when removed after a behavior, increases the likelihood of that behavior being repeated in the future.

Primary Reinforcer

Any reinforcer that is naturally reinforcing by meeting a basic biological need, such as hunger, thirst, or touch.

Fixed-Ratio Schedule

A fixed-ratio schedule is a type of operant conditioning reinforcement schedule where a response is reinforced only after a specified number of responses.

Variable-Ratio Schedule

A reinforcement schedule in which a response is reinforced after an unpredictable number of responses, leading to high and steady response rates.