If the utilization rates of capital and labor are procyclical, then
A) output will rise in recessions and decline in expansions.
B) measured productivity will be constant.
C) the Solow residual will be procyclical.
D) prices will be countercyclical.
C
Economics
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Assume the inflation rate falls from 4 percent to 2 percent. This means that
A) the price level has fallen. B) the price level is increasing more slowly. C) the economy is experiencing deflation. D) real GDP is decreasing.
Economics
The Employment Act of 1946 committed the federal government to intervening in the economy to prevent large declines in output and employment.
Answer the following statement true (T) or false (F)
Economics