Critics of the RBC approach argue that it's hard to find productivity shocks large enough to cause business cycles. What is the RBC counterargument to this criticism?
A) Business cycles are always and everywhere a monetary phenomenon.
B) Wars and military buildups could be considered productivity shocks.
C) Business cycles could be caused by the accumulation of small productivity shocks.
D) Business cycles are often caused by unobservable productivity shocks, which aren't apparent at the time they occur.
C
You might also like to view...
Suppose it costs a farmer $1.00 to produce 1 unit of corn, $2.10 to produce 2 units of corn, and $3.30 to produce 3 units of corn. What's the average cost of producing 2 units of corn?
A) $1.00 B) $1.05 C) $1.10 D) $2.00 E) $2.10
How has the U.S. government debt changed since 2008? What are the sources of the change in U.S. government debt?
What will be an ideal response?
One way to characterize technological change is "creative destruction," which basically means that today's innovation will productively destroy yesterday's capital investment
This destruction creates new job opportunities, boosts production and offers a greater variety or more goods and services than in the past. Indicate whether the statement is true or false
Federal Reserve notes are
A. both an asset and a liability to the Federal Reserve System. B. a liability of the Federal Reserve System. C. a liability to the United States Treasury. D. an asset to the Federal Reserve System.