How Many of the Following Business Cycle Facts Can Be

question 6

Multiple Choice

How many of the following business cycle facts can be explained if the primary cause of business cycles is temporary changes in total factor productivity: procyclical consumption, procyclical
Investment, procyclical employment, and procyclical real wages?

• A)one
• B)two
• C)three
• D)four
• E)none

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Definitions:

Franchisor

A company that grants the license to third parties for them to operate a business under the franchisor's brand and business model.

Principal

The original sum of money lent or invested, excluding any profits or interest generated from it.

Commission

A fee paid to an agent in a transaction, typically calculated as a percentage of the sale price.

Car Salesman

A person who sells new or used vehicles at a dealership.