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ice5192 ice5192
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6 years ago
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.
E) lower real interest rate and a lower aggregate output than the "bad" equilibrium.
Textbook 
Macroeconomics, Canadian Edition

Macroeconomics, Canadian Edition


Edition: 5th
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karmarkarmar
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