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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