Changes in total factor productivity are plausible causes of business cycles because
A) of the welfare theorems.
B) the U.S. government is following supply-side economic policy.
C) the model matches many stylized facts.
D) prices are countercyclical.
C
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A shoe-store having a BOGO (buy one get one free) sale is what type of price discrimination?
A. First-degree price discrimination. B. Second-degree price discrimination. C. Third-degree price discrimination. D. It is not price discrimination.
The income elasticity of demand for health care is generally less than 1, indicating consumers consider these services to be luxuries
Indicate whether the statement is true or false
When the market price is set above the equilibrium price:
A. the market is not efficient. B. total surplus is not maximized. C. consumer surplus is decreased. D. All of these are true.
According to the graph shown, if the market goes from equilibrium to having its price set at $10 then:
A. $12 gets transferred from consumer to producer in surplus. B. all producer surplus lost is gained by consumers. C. all consumer surplus lost is gained by producers. D. $12 gets transferred from producer to consumer in surplus.