Changes in Total Factor Productivity Are Plausible Causes of Business

question 51

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.

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Definitions:

Divorce

The legal dissolution of a marriage by a court or other competent body, ending the legal partnership between two spouses.

General Adaptation Syndrome

A theoretical framework describing the body's short-term and long-term reactions to stress, which includes stages of alarm, resistance, and exhaustion.

Fight-Or-Flight

A physiological response to perceived danger, preparing the body to either confront the threat or escape.

Consequences

The outcomes or effects that naturally follow from a particular behavior or action.