Exam 10: Classical Business Cycle Analysis

When,because of hiring and firing costs,firms retain workers in a recession that they would otherwise lay off,there is said to be

The short-run aggregate supply curve can slope upward because

You are likely to think that the relative price of your good has risen and you should increase your output if you expected

Real business cycle theorists think that most business cycle fluctuations are caused by shocks to

According to the misperceptions theory,short-lived shocks may have long-term effects on the economy because of

According to the misperceptions theory,if the Fed wanted to use monetary policy to influence the real economy it would have to

An adverse supply shock would directly ________ labor productivity by changing the amount of output that can be produced with any given amount of capital and labor.It would also indirectly ________ average labor productivity through changes in the level of employment.

If the money supply grows 7% during the year,and people expected the money supply to grow by 5%,what happens to the short-run aggregate supply curve,according to the misperceptions theory?

The theory that real shocks to the economy are the primary cause of business cycles is

If the utilization rates of capital (uK)and labor (uN)are procyclical,then the Solow residual,as conventionally measured,is

If the utilization rates of capital and labor are procyclical,then

Measures of the Solow residual show it to be

One important reason why the Solow residual may be strongly procyclical even if the actual technology used in production doesn't change is that

The primary reason that short-lived shocks can have long-run effects is

Which of the following is not a primary cause of business cycle fluctuations,according to real business cycle theory?

Define real shocks,define nominal shocks,and give an example of each.