One Important Reason Why the Solow Residual May Be Strongly

question 24

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 1 - a)on capital and labor in the production function are procyclical.

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Definitions:

Mean Weekly Salary

The average amount of money earned by workers in a week, calculated by summing all weekly salaries and dividing by the number of salaries.

Female Employees

Women who are employed by an organization, company, or business.

Male Employees

Referring to workers or staff members who identify as male.

GPAs

Grade Point Averages, a numeric representation of the average of all final course grades accumulated over a period.