According to Oatley

question 38

Multiple Choice

According to Oatley,

• A) lower inflation during the 1970s did not reduce unemployment relative to the 1960s.
• B) higher inflation in the 1980s did not raise unemployment relative to the 1970s.
• C) higher inflation in the 1990s did not raise unemployment relative to the 1980s.
• D) lower inflation in the 1990s did not raise unemployment relative to the 1980s.
• E) higher inflation in the 1990s did raise unemployment relative to the 1980s.

Understand the basic concepts of game theory.

Analyze the outcomes of sequential and simultaneous games.

Identify best responses in game theoretic models.

Determine Nash equilibria in various game settings.

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Definitions:

Confirmation Bias

The tendency to search for, interpret, favor, and recall information in a way that confirms one's preexisting beliefs or hypotheses.

Representativeness Heuristic

A cognitive bias in decision making, where the likelihood of an event is estimated based on how similar it is to the typical case.

Convergent Thinking

A cognitive process in which a single, correct solution to a problem is identified through logical reasoning.

Divergent Thinking

A thought process used to generate creative ideas by exploring many possible solutions.