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    Macroeconomics Study Set 2
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    Exam 13: Business Cycle Models with Flexible Prices and Wages
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    A Model with Coordination Failures Has
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A Model with Coordination Failures Has

Question 18

Question 18

Multiple Choice

A model with coordination failures has


A) agents that do not act rationally.
B) multiple equilibria.
C) a government that is too large.
D) a tax rate that is too high.

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