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


e) all of the above

Economics

You might also like to view...

The higher a security's price in the secondary market the ________ funds a firm can raise by selling securities in the ________ market

A) more; primary B) more; secondary C) less; primary D) less; secondary

Economics

If a private market determines the quantity of smallpox vaccinations, which of the following is true?

a. The equilibrium quantity is too low for efficiency. b. The equilibrium price and quantity are too high for efficiency. c. The equilibrium price is efficient. d. The equilibrium quantity is too high for efficiency. e. The equilibrium price and quantity are efficient.

Economics

Along the long-run Phillips curve, the value of _____ remains constant

a. unemployment b. inflation c. the interest rate d. investment

Economics

A factory closes, laying off hundreds of workers, and consumer spending in the town falls. What factor is affecting demand?

a. consumer expectation b. consumer taste c. income d. substitutes

Economics