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    Macroeconomics Study Set 2
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    Exam 13: Business Cycle Models with Flexible Prices and Wages
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    Strategic Complementarities May Help Explain Business Cycles Because Such Complementarities
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Strategic Complementarities May Help Explain Business Cycles Because Such Complementarities

Question 20

Question 20

Multiple Choice

Strategic complementarities may help explain business cycles because such complementarities may lead to


A) decreasing returns to scale.
B) constant returns to scale.
C) increasing returns to scale.
D) a downward-sloping labor supply curve.

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