In macroeconomics, game theory focuses on the strategic interactions between which of the following groups of agents?
A) Individuals and firms.
B) Academic economists and business economists.
C) Individuals, firms and policy makers.
D) Policy makers and economic forecasters.
E) Individuals, firms and economic forecasters.

Question

Quizplus · Accepted Answer

Game theory in macroeconomics focuses on the strategic interactions between individuals, firms, and policy makers. This is because policy decisions made by governments can have a significant impact on the behavior of individuals and firms, and vice versa. Therefore, understanding how these different groups interact strategically is an important part of macroeconomic analysis.

In Macroeconomics, Game Theory Focuses on the Strategic Interactions Between