One Important Reason Why the Solow Residual May Be Strongly

question 47

Multiple Choice

One important reason why the Solow residual may be strongly procyclical even if the actual technology used in production doesn't change is that

• A)employment is procyclical.
• B)resource utilization is procyclical.
• C)demand shocks are the dominant force determining the business cycle.
• D)the coefficients (a and l-a)on capital and labour in the production function are procyclical.

---

Definitions:

Monocular Cues

Visual information that allows for the perception of depth and distance using one eye.

Sense Of Depth

The capability to see the environment in three dimensions and gauge an object's distance.

Paint A Picture

A metaphorical expression used to describe the act of vividly depicting a scenario or detailing a situation.

Gestalt Theory

A psychological approach stating that the human mind perceives objects as whole rather than as a sum of its parts.