According to real business cycle theorists
a. technology creates unemployment by displacing labor and this can spark the beginning of an economy's downturn
b. firms that don't adopt the new, available technology cannot compete with firms that do and end up being driven out of business
c. business cycles are inevitable because technological change is inevitable
d. technology displaces labor, which reduces labor productivity which causes prices, profit, and GDP to fall
e. technology displaces labor, increases labor productivity, and raises prices and profit, which stimulates firms to create even more technology
B
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A progressive income tax is defined as a tax for which
A) total taxes paid increase with the level of income. B) total taxes paid are independent of the level of income. C) the average tax rate increases with the level of income. D) the average tax rate decreases with the level of income.
If Gambinia has many workers but very little land and even less productive capital, then, following the Heckscher-Ohlin model, we predict that Gambinia will export
A) labor-intensive goods. B) capital-intensive goods. C) both capital- and land-intensive goods. D) land-intensive goods. E) both labor- and land-intensive goods.