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
Q10: The marginal benefit from investment is<br>A) the
Q11: An asymmetric information problem arises when<br>A) interest
Q12: The total government expenditure multiplier is<br>A) larger
Q13: The firm will hire current labour until<br>A)
Q14: If firm-level asymmetric information becomes more severe,then<br>A)
Q16: The output supply curve is the relationship
Q17: An increase in the default premium<br>A) raises
Q18: The decrease in lifetime wealth affects consumption
Q19: The marginal rate of substitution of future
Q20: A temporary increase in government spending that