Our business cycle experiences suggest that a macroeconomic policy designed to lower the average rate of inflation will require ________ in actual real GDP and an accompanying ________ in the unemployment rate

Stabilization policy may be necessary to slow down the speed of the adjustment process

a. True b. False Indicate whether the statement is true or false

People do NOT usually behave in a noncooperative fashion even when it is in their immediate interest to do so because

A. they know they will have repeated dealings with the other people. B. they understand the difficulties with game theory. C. they know there can be 2 winners. D. they realize such behavior is immoral.