Repeated games often lead to cooperation
Indicate whether the statement is true or false
True
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Assume that a house is rented by four students. When it comes to keeping the house clean, each of the four roommates has an incentive to leave cleaning to the others. As a result, the house is never clean
Which of the following is the best solution to this problem of free riding? A) Assign one roommate the responsibility to keep a watch over the other students B) Require every roommate to contribute to a cleaning service C) Ask every roommate to clean the house if they dirty it D) Require each roommate to pay more toward the house rent and groceries
Refer to the above figure. If the relevant aggregate demand curve is AD1, then the economy is experiencing
A) full employment. B) an inflationary ga