The normal rate of unemployment around which the unemployment rate fluctuates is called cyclical unemployment

Which of the following is not a tool the Fed uses to manage the money supply?

A) open market operations B) setting the discount rate C) setting reserve requirements for deposits in the banking system D) expanding and contracting deposit insurance

The above figure shows the payoff matrix for two firms, A and B, choosing to produce a basic computer or an advanced computer. The mixed-strategy Nash equilibrium is

A) Firm A produces an advanced computer with 80% chance, firm B produces an advanced computer with 20% chance. B) Both firms produce advanced computers with 50% chance. C) Firm A produces an advanced computer with 60% chance, firm B produces an advanced computer with 40% chance. D) Both firms produce advanced computer with 80% chance.