Multiple Choice
An alternative to Prescott's explanation of the cyclical behavior of the Solow residual is that it is the result of:
A) labor hoarding in recession and cyclical mismeasurement of output.
B) bad weather, strict environmental regulations, and oil shocks.
C) declines in capital utilization and labor force participation.
D) technology shocks.
Correct Answer:
Verified
Correct Answer:
Verified
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