Multiple Choice
Changes in total factor productivity are plausible causes of business cycles because productivity-induced business cycles correctly predict
A) real wages and total hours must be procyclical.
B) real wages and consumption must be procyclical.
C) total hours worked and consumption must be procyclical.
D) consumption and government spending must be procyclical.
E) consumption and total factor productivity must be procyclical.
Correct Answer:

Verified
Correct Answer:
Verified
Q50: What are three reasons for a competitive
Q51: To choose the optimal level of government
Q52: In the production function,output is given by<br>A)
Q53: Goods and services provided by the government
Q54: An increase in total factor productivity shifts
Q56: The concept of Pareto optimality is a<br>A)
Q57: Relative to the social optimum,monopoly power directly
Q58: When we adjust the model to include
Q59: A competitive equilibrium has the following property:<br><br>A)
Q60: Making use of an economic model is