In Macroland,autonomous Consumption Equals 100,the Marginal Propensity to Consume Equals

question 166

Multiple Choice

In Macroland,autonomous consumption equals 100,the marginal propensity to consume equals 0.75,net taxes are equal to 40,planned private-sector investment is equal to 50,government purchases are equal to 150,and net exports are equal to 20.Short-run equilibrium output in this economy equals

• A) 387.
• B) 1,000.
• C) 1,150.
• D) 1,160.
• E) 1,280.

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Definitions:

Zero-sum Games

A concept in game theory where one participant's gain is exactly balanced by the losses of other participants.

Non-zero-sum Games

Situations in game theory where the gain or loss of one participant does not necessarily correlate with the loss or gain of another participant.

Prisoner's Dilemma

A game theory scenario demonstrating why two rational individuals might not cooperate even when it appears that it is in their best interest to do so.

Robert Axelrod

A political scientist known for his work on the theory of cooperation and competition, including the development of the iterated prisoner's dilemma model.