How should you set up the game tree, and can you explain why you set it up the way you did? What is the rollback equilibrium? Note that your answer will depend on the value of p.

Context:

Finally, we consider a version of the nomination problem that considers both strategy and uncertainty. As in part (b), the leaders make their decision about whom to support first, and the activists second. Also, the leaders prefer A, the activists prefer B. Additionally, there is uncertainty about whether B is a star or a dud, and the probability that B is a star is p. The leaders make their support decision before B's true political ability is revealed; the activists make their decision afterward. If the party unites behind A, the pay-offs are the same as in (c): a pay-off of 5 for the leaders and 3 for the activists. Similarly, if the party unites behind B and B is a star, the leader's pay-off is 3 and the activist's is 6. If they unite behind B and she is a dud, however, both get a pay-off of 1. If the party fails to unite, both players get a pay-off of 0 with one exception. If B turns out to be a star, the activists will find her candidacy so exciting that they will get a pay-off of 4 from supporting her even if the leaders have supported A (the leader's pay-off in this case is still 0.)

AP Macroeconomics Unit 6: Inflation, Unemployment and Stabilization Policies ASSUITIt all COUTUIlly UIat IS UpCIquily auUVE lull CITYIVYIIIGIRL. A. Draw a correctly labeled aggregate demand and aggregate supply graph and show each of the following: 1. The long-run aggregate supply curve ii. Current price level and output levels, labeled PLe and Ye ili. Full employment output, labeled Yf B. Identify one fiscal policy action that could resolve the problem. C. Using your graph in Part A, show the short-run effects of the action you identified on each of the following: i. Aggregate demand. Explain (use the cause and effect chain you learned in the lesson) ii. Output iii. Price level D. Using a correctly labeled loanable funds graph, show the effect of the policy you identified in Part B on real interest rates. E. Given the change in the real interest rate in Part D, what is the impact on each of the following? i. Investment ii. Economic growth rate. Explain. iii. The international value of the dollar. Explain. F. Now assume instead that the government takes no policy action to fix the problem identified in part A. i. In the long run, will the short-run aggregate supply increase, decrease, or remain unchanged? Explain. 3 of 410.ST The production possibilities frontier model shows that A) if consumers decide to buy more of a product. its price will increase 1) a market economy is more efficient in producing goods and services than is a centrally planned economy. (] economic growth can only be achieved by free market economics. D) if all resources are fully and efficiently utilized. more of one good can be produced only by producing less of another good. it 129 In a production possibilities frontier, a point the frontier is productively inefficient. Al along 13) inside Ci outside D) at either intercept ofInstructions: For the following question, write your answers in the space provided. Show all work. Answers must be hand-written. Upload pdf file to the assignment folder prior to the deadline. Question 1 (Lecture 23a) List the two reasons (given in our chapter 23 model) why the aggregate demand (AD) curve is downward sloping. a) Question 2 (Lecture 23b) The diagram below shows an AD-AS model for a hypothetical economy. Suppose the economy is initially operating at point A. Then the government increases its purchases of goods and services by 50, causing the AD curve to shift to the right as shown. (1) Calculate the 'simple multiplier". (2) Calculate the "multiplier'. Price Level 110 100 -ADT AD 1106 Real GDP Question 3 (Lecture 23d) In 1979-1980, OPEC's actions to restrict oil output significantly increased the world price of oil. What effect did this have on the AD-AS macro model for Singapore (a small open economy that does not export oil or commodities)? Identify which curve was affected and describe the short-run effect on equilibrium real GDP and the price level.O QUESTION 3 Jason has $100,000 to invest in a savings account. He has two options: Option A earns 4% interest compounded quarterly, and Option B earns 3.994 interest compounded continuously. Which account will be more valuable after 10 years? O Option A O Option B QUESTION 4 These two questions Jason has $100,000 to invest in a savings account. He has two options: Option A earns 49% interest compounded quarterly Option B earns 3.99% Interest compounded continuously. How much more money will be in the more valuable account after 10 years? Send a chat Click Save and Submit to save and submit. Click Save All Answers to save all answers. Saye All OQUESTION 44 Fill in the blank(s) below. Possible options are given in the parentheses after each blank. Note that in order to get credits for this question, your answers must be completely correct. There is no partial credit so as to discourage you from simply guessing the answers. A cut in military spending and an expansion of an investment tax credit would definitely cause the (price, quantity) of loanable funds traded in the loanable funds market to (increase, decrease). QUESTION 45 Look at Figure 3.2 in Section 1.2. Suppose you know that, at a price of $4, the quantity supplied is 10 million pounds, and at a price of $7, the quantity supplied is 40 million pounds. What is the quantity supplied when price is at $5? Type your answer as a whole number. Round it if necessary. Leave out the unit of measurement: For example, if your answer is 17 million pounds, type it as 17, not 17,000,000