An alternative to Prescott's explanation of the cyclical behaviour of the Solow residual is that it is the result of:
A) labour hoarding in recession and cyclical mismeasurement of output.
B) bad weather, strict environmental regulations, and oil shocks.
C) declines in capital utilization and labour force participation.
D) technology shocks.
Correct Answer:
Verified
Q44: When capital increases by ΔK units and
Q46: The Solow residual will fall even if
Q47: Prescott interpreted fluctuations in the Solow residual
Q48: If the production function is Y =
Q50: Labour hoarding refers to:
A)keeping workers in low-wage
Q51: In the two-sector endogenous growth model, income
Q52: Total factor productivity may be measured by:
A)subtracting
Q53: In a steady state with population growth
Q54: In comparing two countries with different levels
Q74: If the per-worker production function is y
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