Use the Table, with Data for Workers and Firms, to Answer

Multiple Choice

Use the table, with data for workers and firms, to answer the question. The payoff cells are labeled A, B, C, and D. $$\begin{array}{l}\text { Table: Spending and Producing }\\\begin{array} { | l | l | l | } \hline & { \begin{array} { c } \text { Firms produce and hire a } \\\text { lot. }\end{array} } & { \begin{array} { c } \text { Firms cut back on production and } \\\text { hiring. }\end{array} } \\\hline \text { Workers spend a lot. } & \begin{array} { l } \text { A. Workers spend a lot, } \\\text { and firms hire a lot. }\end{array} & \begin{array} { l } \text { B. Workers overspend, and firms } \\\text { underproduce. }\end{array} \\\hline \begin{array} { l } \text { Workers cut back on } \\\text { spending. }\end{array} & \begin{array} { l } \text { C. Workers underspend, } \\\text { and firms overproduce. }\end{array} & \begin{array} { l } \text { D. Workers spend little, and firms } \\\text { sell little. }\end{array} \\\hline\end{array}\end{array}$$ The equilibria are cells _____. The boom is cell _____, and the bust is cell _____.

A) B and C; B; C
B) B and C; C; D
C) A and D; D; A
D) A and D; A; D