The clustering of economic activity in time does NOT:
A) make buying and selling more efficient.
B) induce intertemporal substitution.
C) eliminate long periods of unemployment.
D) cause shocks to spread through the economy and through time.

Question

Quizplus · Accepted Answer

Clustering of economic activity in time does not eliminate long periods of unemployment as unemployment is affected by various other factors such as labor market policies, technological advances, trade policies, and global economic conditions. Clustering of economic activity in time can potentially increase efficiency in buying and selling, induce intertemporal substitution, and cause shocks to spread through the economy and through time.

The Clustering of Economic Activity in Time Does NOT