Changes in total factor productivity are plausible causes of business cycles because productivity-induced business cycles correctly predict
A) real wages and consumption must be procyclical.
B) consumption and total factor productivity must be procyclical.
C) total hours worked and consumption must be procyclical.
D) real wages and total hours must be procyclical.
E) consumption and government spending must be procyclical.
Correct Answer:
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Q17: The government spending multiplier is
A)the ratio of
Q18: Much of the writings of Adam Smith
Q19: The concept of Pareto optimality is a
A)useful
Q20: In an economic model, an endogenous variable
Q21: Government spending in the one-period model acts
Q23: In an economic model, government spending is
Q24: The marginal rate of transformation is
A)is equal
Q25: A Pareto optimum
A)is the slope of the
Q26: In the production function, output is given
Q27: In response to an increase in total
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