In real business cycle theory, the persistence of shocks to total factor productivity is justified by
A) the fact that some capital depreciates every period.
B) the behavior of Solow residuals.
C) the fact that Taylor rules have been used in post-war United States.
D) the fact that capital takes some time to build.
B
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If a worker is temporarily laid off because the economy is in a recession
A) frictional unemployment increases. B) structural unemployment increases. C) the size of the labor force rises. D) cyclical unemployment increases.
During the Great Depression, what appeared to be ________ fiscal policy was actually not when the ________ budget deficit or surplus is examined
A) expansionary; cyclically adjusted B) contractionary; actual C) expansionary; actual D) contractionary; cyclically adjusted
To determine the incidence of a tax, it is necessary to have information on both the elasticity of demand and the elasticity of supply
a. True b. False Indicate whether the statement is true or false
Protection is often temporary to help infant industries.
Answer the following statement true (T) or false (F)