The model predicts that in response to a permanent positive change in technology real consumption will be procyclical.
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Q1: An increase in the interest rate makes
Q2: An equilibrium business-cycle model:
A)uses shocks to GDP
Q4: If there is a permanent increase in
Q5: During an economic expansion due to an
Q6: When the marginal product of labour increases
Q7: During an economic expansion due to an
Q8: The model predicts that if there is
Q9: An increase in the level of technology,
Q10: If technology, A, increases, then:
A)the MPK and
Q11: The model predicts that if there is
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