Multiple Choice
How many of the following business cycle facts can be explained if the primary cause of business cycles is temporary changes in total factor productivity: procyclical consumption, procyclical
Investment, procyclical employment, and procyclical real wages?
A) one
B) two
C) three
D) four
E) none
Correct Answer:
Verified
Correct Answer:
Verified
Q1: The firm will hire current labour until<br>A)the
Q2: A key determinant of investment is<br>A)the level
Q3: The marginal benefit from investment comes from<br>A)increases
Q4: A consumer may increase his or her
Q5: The assumption that current-period labour supply is
Q7: The demand for current consumption, as plotted
Q8: If a bubble occurs in the housing
Q9: An increase in government spending<br>A)does not affect
Q10: If government spending increases then, given the
Q11: When drawn against the real interest rate,