Changes in Total Factor Productivity Are Plausible Causes of Business

question 28

Multiple Choice

Changes in total factor productivity are plausible causes of business cycles because productivity-induced business cycles correctly predict

• A)real wages and consumption must be procyclical.
• B)consumption and total factor productivity must be procyclical.
• C)total hours worked and consumption must be procyclical.
• D)real wages and total hours must be procyclical.
• E)consumption and government spending must be procyclical.

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Definitions:

Customers' Expectations

Customers' expectations refer to the beliefs and attitudes customers have about the level of service or product quality they will receive from a provider.

Consumerism Mind-set

The prevailing cultural attitude that values excessive purchasing and consumption of goods as a route to personal happiness and social status.

Responsive

Describes an entity's quick and positive reaction to changes or requests, often aiming to meet needs or solve problems efficiently.

Customers' Needs

The requirements or desires that consumers seek to fulfill through purchasing and using goods or services.