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If the Utilization Rates of Capital (UK)and Labor (UN)are Procyclical,then Y[(uKK)a(uNN)1a] Y\left[\left(u_{K} K\right)^{a}\left(u_{N} N\right)^{1-a}\right]

Question 90

Multiple Choice

If the utilization rates of capital (uK) and labor (uN) are procyclical,then the Solow residual,as conventionally measured,is


A) Y[(uKK) a(uNN) 1a] Y\left[\left(u_{K} K\right) ^{a}\left(u_{N} N\right) ^{1-a}\right]
B) Y/[(uKK) a(uNN) 1a] Y /\left[\left(u_{K} K\right) ^{a}\left(u_{N} N\right) ^{1-a}\right]
C) AuKauN1a A u_{K}^{a} u_{N}^{1-a}
D) 1/{Y[(uKK) a(uNN) 1a]} 1 /\left\{Y\left[\left(u_{K} K\right) ^{a}\left(u_{N} N\right) ^{1-a}\right]\right\}

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