Christina Romer's criticism of the belief that business cycles had moderated since World War II depended on the fact that
A) estimates of the timing of business cycles since World War II had been inaccurate.
B) misuse of historical data had caused economists to understate the size of cyclical fluctuations in the post-World War II era.
C) economists had ignored the roles of the government and international trade in mitigating economic fluctuations prior to World War II.
D) economists had left out important components of GDP, such as wholesale and retail distribution, transportation, and services, in their pre-World War II estimates.
D
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In response to the financial crisis of 2007 and the ensuing recession, the Fed announced three rounds of "quantitative easing," where the Fed purchased billions of dollars of securities
What impact would quantitative easing have on the monetary base? A) The monetary base would increase. B) The monetary base would decrease. C) The monetary base would not change. D) While the monetary base would change, it is impossible to predict in which direction.
If the substitution effect from a higher wage rate exceeds the income effect, then a higher wage rate
A) increases the quantity of labor supplied. B) decreases the quantity of labor supplied. C) shifts the supply of labor curve leftward. D) shifts the supply of labor curve rightward.