When a game has multiple equilibria, a useful method to sort out which one would be the "best" prediction is to
a. find the one (if any) in which both players are better off than in any other equilibrium.
b. find the equilibrium that is symmetric, if any.
c. find the one which seems "focal", if any.
d. all of the above.
d
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According to your authors, economics
A) alone is not the only, or even the best, perspective to make sense out of the real world. B) can predict real-world phenomena with roughly 85-90% accuracy. C) generates conclusions every reasonable person should accept as true. D) is a false doctrine because individuals have been shown to act non-selfishly.
An increase in the amount and time period for which unemployment compensation is paid will most likely
A) increase the structural rate of unemployment. B) leave the natural rate of unemployment unchanged. C) decrease the natural rate of unemployment. D) increase turnover unemployment.