Changes in government spending are not likely causes of business cycles because government spending induced business cycles would,counterfactually predict
A) countercyclical consumption.
B) procyclical consumption.
C) countercyclical employment.
D) procyclical employment.
E) countercyclical real wages.
Correct Answer:
Verified
Q40: A Pareto optimum requires Q41: According to our model,increasing G during a Q42: An increase in total factor productivity shifts Q43: An increase in total factor productivity shifts Q44: The Solow residual attempts to measure changes Q46: Intertemporal substitution of labour suggests that Q47: Changes in total factor productivity are plausible Q48: According to the Laffer Curve Q49: In response to an increase in total Q50: Real business cycle theory argues that the
A) 
A) the
A) there may
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