Which feature of the business cycle does the one-period model replicate with shocks to government expenditures?
A) procyclical employment
B) procyclical consumption
C) procyclical real wages
D) countercyclical prices
Correct Answer:
Verified
Q47: Changes in total factor productivity are plausible
Q48: An increase in government spending
A) increases consumption
Q49: An increase in government spending shifts the
Q50: In response to an increase in total
Q51: An increase in government spending
A) increases consumption,
Q53: Changes in government spending are not likely
Q54: Proportional income taxation is distorting because
A) people
Q55: A one-unit increase in government expenditures should,according
Q56: An increase in total factor productivity shifts
Q57: Changes in total factor productivity are plausible
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