Research on productivity shocks has shown that

A) productivity shocks have only nominal effects.
B) there have been no identifiable productivity shocks in the U.S. economy since World War II.
C) small productivity shocks can explain large business cycle fluctuations.
D) large productivity shocks produce only small deviations in aggregate output.

C

Economics

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International trade allows countries to:

a. produce outside their PPF. b. produce inside their PPF. c. consume inside their PPF. d. consume outside their PPF.

Economics

Suppose a basket of goods and services has been selected to calculate the CPI and 2012 has been selected as the base year. In 2012, the basket's cost was $50; in 2014, the basket's cost was $52; and in 2016, the basket's cost was $55 . The value of the CPI in 2016 was

a. 90.9. b. 104.0. c. 105.0. d. 110.0.

Economics