Multiple Choice
Critics of the real business cycle theory find it difficult to understand:
A) why the unemployment rate is always high.
B) what makes potential output change over time.
C) why technological changes affect labor productivity.
D) how adverse changes in technology are so frequent.
Correct Answer:
Verified
Correct Answer:
Verified
Q44: The reduction in consumption, investment or net
Q45: An improvement in technology that makes workers
Q46: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB5231/.jpg" alt=" Figure 7.2 -Refer
Q47: According to the classical economists, the economy:<br>A)
Q48: Explain why the production function is shaped
Q50: How do diminishing returns affect the shape
Q51: When constructing a production function between labor
Q52: Explain what would happen to the labor
Q53: Suppose that the U.S. has an open
Q54: Why do classical economists believe that the