How do adherents of traditional business cycle theories differ from real business cycle theorists? List the difference between their views on the role of government
Economists associated with traditional business cycle theories see cycles as a problem, while real business
cycle theorists see cycles as a natural, anticipated, and positive outcome of technological change and
increased productivity. Economists associated with traditional business cycle theories see government as an
instrument to correct the problems associated with business cycles, while real business cycle theorists see
government as a long-run growth obstructionist.
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A marginally attached worker is
A) a person who is not happy with his or her job. B) someone who works part-time more than 25 hours per week but wants full-time work. C) someone who does not have a job but is available and willing to work and has made specific but unsuccessful efforts to find a job during the past 4 weeks. D) someone who does not have a job but is available and willing to work but has not made specific efforts to find a job during the past 4 weeks. E) another name for an unemployed worker.
One possible reason for slower growth in developing and transition countries is
A) capital may not be directed to its most productive use. B) strict accounting standards are too stringent for the banks to meet. C) the weak link between government and financial intermediaries. D) the lack of adverse selection and moral hazard problems.