In the coordination failure model, the most likely explanation of business cycles are
A) money supply shocks.
B) government spending shocks.
C) total factor productivity shocks.
D) fluctuations between "good" and "bad" equilibria.
D
Economics
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Assume that the economy is at a long run equilibrium and oil prices rise. As a result, the ________ shifts ________
A) AD; rightward B) AD; leftward C) SAS; rightward D) SAS; leftward
Economics
A firm uses an efficiency wage scheme to deter workers from shirking. A risk-neutral worker will NOT shirk if
A) the expected loss from being fired is larger than or equal to the gain from shirking. B) the expected loss from being fired is smaller than the gain from shirking. C) the gain from shirking is positive. D) the expected loss from being fired is zero.
Economics