Refer to Scenario 12.2. In this game, if both players end up playing their tough strategies, then
A) Eliza will donate a kidney and Jerome will not donate.
B) both Eliza and Jerome will donate a kidney.
C) Jerome will donate a kidney and Eliza will not donate.
D) neither Eliza nor Jerome will donate a kidney.
Question 2
In the United States during the 1970s, the unemployment rate rose from previous years, and the inflation rate increased rapidly. This set of events is best described by saying that the
A) the long-run Phillips curve shifted leftward.
B) short-run Phillips curve shifted downward.
C) economy moved to a lower point on its short-run Phillips curve but the short-run Phillips curve did not shift.
D) short-run Phillips curve shifted upward.
E) economy moved to a higher point on its short-run Phillips curve but the short-run Phillips curve did not shift.
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