Changes in total factor productivity are plausible causes of business cycles because productivity-induced business cycles correctly predict
A) real wages and total hours must be procyclical.
B) real wages and consumption must be procyclical.
C) total hours worked and consumption must be procyclical.
D) consumption and government spending must be procyclical.
Correct Answer:
Verified
Q42: With a linear production function in labor
Q43: The variable G considered in the model
Q44: How does an increase in the proportional
Q45: An increase in total factor productivity
A) increases
Q46: At the competitive equilibrium with a positive
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,
Q52: Which feature of the business cycle does
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