Changes in Total Factor Productivity Are Plausible Causes of Business

question 55

Multiple Choice

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

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

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