The Most Common Measure of Productivity Shocks Used by Real

question 37

Multiple Choice

The most common measure of productivity shocks used by real business cycle theorists is

• A)the Solow residual.
• B)average labor productivity.
• C)the change in the capital stock.
• D)unit labor costs.

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Definitions:

Typeset

The arrangement and setting of textual material in a specific style and size of type for printing.

Zero Marginal Cost

The situation in which producing an additional unit of a good or service does not incur any additional cost.

Fixed Cost

Costs that do not change with the level of production or output, such as rent, salaries, and loan payments.

Patent

A legal right granted to an inventor that provides exclusive commercial rights to an invention or process for a certain period.