Changes in government spending are not likely causes of business cycles because government spending induced business cycles would, counterfactually predict
A) countercyclical real wages.
B) procyclical real wages.
C) countercyclical employment.
D) procyclical employment.
E) countercyclical consumption.
Correct Answer:
Verified
Q45: In the model where G = qT,
Q46: In the model where G = qT,
Q47: Changes in total factor productivity are plausible
Q48: The Laffer Curve illustrates the relationship between
A)
Q49: An increase in total factor productivity involves
A)
Q51: An increase in total factor productivity shifts
Q52: Intertemporal substitution of labour suggests that
A) the
Q53: In the model where G = qt,
Q54: The substitution effect that results from a
Q55: An increase in total factor productivity
A) increases
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