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Author Question: If an economy is stuck in a bad equilibrium in the coordination failure model A) the government ... (Read 32 times)

mckennatimberlake

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on: Jun 30, 2018
If an economy is stuck in a bad equilibrium in the coordination failure model
 
  A) the government should intervene by spending more.
  B) the government should intervene by spending less.
  C) the government should promote optimism.
  D) there is nothing that can be done.

Question 2

The marginal product of capital indicates ________. Therefore the MPK curve is also ________.
 
  A) the quantity of capital supplied for a given rental price; the equilibrium price of capital
  B) the quantity of capital demanded for a given rental price; the demand curve of capital
  C) the quantity of capital demanded for a given rental price; the equilibrium price of capital
  D) the quantity of capital supplied for a given rental price; the supply curve of capital
  E) none of the above


mcinincha279

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Reply #1 on: Jun 30, 2018
Answer to Question 1

C

Answer to Question 2

B


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