In the coordination failure model, the "good" equilibrium is characterized by a
A) higher real interest rate and a higher price level than the "bad" equilibrium.
B) higher real interest rate and a lower price level than the "bad" equilibrium.
C) lower real interest rate and a higher price level than the "bad" equilibrium.
D) lower real interest rate and a lower price level than the "bad" equilibrium.
D
Economics
You might also like to view...
If the market price is less than a perfectly competitive firm's average total cost, what sort of profit or loss is the firm earning?
What will be an ideal response?
Economics
What is the relationship among the AD, SRAS and LRAS curves when the economy is in macroeconomic equilibrium?
What will be an ideal response?
Economics