A Temporary Supply Shock,such as an Increase in Oil Prices,would

question 37

Multiple Choice

A temporary supply shock,such as an increase in oil prices,would

• A)shift the IS curve down and leave the FE line unchanged.
• B)shift the IS curve down and shift the FE line to the left.
• C)shift the IS curve up but leave the FE line unchanged.
• D)have no effect on the IS curve.

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Definitions:

Prisoner's Dilemma

Prisoner's Dilemma is a concept in game theory where two individuals acting in their own self-interest pursue a course of action that does not result in the ideal outcome for either of them.

Cooperate

The act of working together towards a common goal or interest, often seen in contexts where individuals or entities join forces for mutual benefit.

Nash Equilibrium

is a concept in game theory where no player can benefit by changing their strategy while the other players keep theirs unchanged.

Cartels

Groups of independent market participants who collude with one another to manipulate the price of a good or service in the market.