An Alternative to Prescott's Explanation of the Cyclical Behaviour of the Solow

question 54

Multiple Choice

An alternative to Prescott's explanation of the cyclical behaviour of the Solow residual is that it is the result of:

• A)labour hoarding in recession and cyclical mismeasurement of output.
• B)bad weather, strict environmental regulations, and oil shocks.
• C)declines in capital utilization and labour force participation.
• D)technology shocks.

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