When the prisoners follow their dominant strategy and confess, they will be worse off than if both had remained silent—hence, the "prisoners' dilemma."

In the extreme case of a complete crowding-out effect

A) an increase in interest rates will stimulate investment spending. B) an increase in government spending will not increase aggregate demand. C) an increase in tax rates will stimulate work effort. D) an increase in government spending will stimulate investment spending.

Cyclical unemployment is

A) the total of structural and frictional unemployment. B) created by a recession. C) part of frictional unemployment. D) higher when the economy is expanding. E) always greater than the total of structural and frictional unemployment.