An Example of the Limits of Using TFP as the Sole

question 98

Multiple Choice

An example of the limits of using TFP as the sole driver of recessions is:

• A) noting that there was a large positive TFP shock during the Great Recession.
• B) that hyperinflations nearly destroyed many African economies.
• C) finding that financial shocks have been the cause of every recession since 1960.
• D) that it is impossible to, even weakly, estimate TFP shocks.
• E) demonstrating that no shock is random.

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Definitions:

Disparate-Impact Cases

Legal cases that deal with practices that adversely affect one group of people more than another, even if the practices are formally neutral.

Unintentional Discrimination

A situation where policies, practices, or actions result in unequal outcomes for different groups without the intent to discriminate.

Same Sex Harassment

Harassment on the basis of sexual orientation or toward individuals of the same sex, which can include unwelcome sexual advances or conduct affecting job performance.

Title VII

A segment of the Civil Rights Act of 1964 that bans discrimination in employment due to race, color, religious beliefs, sex, or the country of origin.