Author Question: Which of the following is true of the dominant strategy equilibrium? A) A dominant strategy ... (Read 111 times)

daltonest1984 · **on:** Jun 29, 2018

Which of the following is true of the dominant strategy equilibrium?

A) A dominant strategy equilibrium always leads to the best outcome for each player.
B) A dominant strategy equilibrium cannot be a Nash equilibrium.
C) A dominant strategy equilibrium is a Nash equilibrium if each player chooses a strategy that is a best response to the strategies of others.
D) A dominant strategy equilibrium occurs if the sum of the players' payoff is zero.

Question 2

In the late 1920s, the U.S. economy experienced a decrease in investment, which perhaps triggered the Great Depression. The decrease in investment

A) increased aggregate supply.
B) decreased aggregate supply.
C) increased aggregate demand.
D) decreased aggregate demand.
E) increased potential GDP.