Percentage Deviations from Trend in the Solow Residual Are

question 31

Multiple Choice

Percentage deviations from trend in the Solow residual are

• A) unrelated to the business cycle.
• B) procyclical and smaller than percentage deviations from trend in GDP.
• C) procyclical and have about equal magnitude as percentage deviations from trend in GDP.
• D) procyclical and larger than percentage deviations from trend in GDP.
• E) related to changes in the labour force.

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