Multiple Choice
Changes in total factor productivity are plausible causes of business cycles because
A) of the welfare theorems.
B) the U.S. government is following supply-side economic policy.
C) the model matches many stylized facts.
D) prices are countercyclical.
Correct Answer:
Verified
Correct Answer:
Verified
Q33: The presence of a distorting tax on
Q34: A competitive equilibrium may fail to be
Q35: In the one-period competitive model we have
Q36: If the government replaces a lump sum
Q37: An increase in government spending<br>A) increases consumption,
Q39: An increase in government spending shifts the
Q40: The first fundamental theorem of welfare economics
Q41: The PPF determines<br>A) all possible outcomes for
Q42: The rate at which one good can
Q43: If public goods can be produced more