Multiple Choice
Business cycles affect long run growth because
A) uncertainty caused by business cycles deters investment
B) installation costs for new plant and equipment are lower during recessions than during periods of expansion
C) human capital depreciates during recessions
D) the competition to survive a recession provides incentives for firms to reorganize for greater efficiency
E) all of the above
Correct Answer:
Verified
Correct Answer:
Verified
Q2: Consider the following hypothetical annual growth rates
Q3: In the long run,the shape of the
Q4: Consider the following hypothetical annual growth rates
Q5: If firms are producing below capacity,<br>A) it
Q6: The slope of the aggregate demand curve
Q8: Which of the following could cause a
Q9: Output in excess of potential GDP<br>A) implies
Q10: Which of the following would cause an
Q11: Which of the following variables typically moves
Q12: Internationally,recessions<br>A) are likely to begin in the