Author Question: If an economy is stuck in a bad equilibrium in the coordination failure model A) the government ... (Read 64 times)

mckennatimberlake

  • Hero Member
  • *****
  • Posts: 559
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

  • Sr. Member
  • ****
  • Posts: 316
Answer to Question 1

C

Answer to Question 2

B



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

The first successful kidney transplant was performed in 1954 and occurred in Boston. A kidney from an identical twin was transplanted into his dying brother's body and was not rejected because it did not appear foreign to his body.

Did you know?

According to the Migraine Research Foundation, migraines are the third most prevalent illness in the world. Women are most affected (18%), followed by children of both sexes (10%), and men (6%).

Did you know?

Although puberty usually occurs in the early teenage years, the world's youngest parents were two Chinese children who had their first baby when they were 8 and 9 years of age.

Did you know?

The immune system needs 9.5 hours of sleep in total darkness to recharge completely.

Did you know?

Everyone has one nostril that is larger than the other.

For a complete list of videos, visit our video library