Quiz10 chapter 10

Macroeconomics plus MyEconLab plus eBook 1-semester Student Access Kit (6th Edition)

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Quiz This activity contains 15 questions.  Real shocks to the economy are the primary cause of business cycles, according to the misperceptions theory. real business cycle theory. Keynesian theory. monetarist theory. A temporary adverse productivity shock would  not reduce the level of employment. reduce the amount of output that can be produced at any  level of employment.
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shift the labor supply curve upward. shift the labor demand curve downward. Real business cycle theory is unable to predict that investment is more volatile than consumption. the real wage is mildly procyclical. employment is procyclical. the price level is procyclical.
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Computer simulations of Edward Prescott's calibrated  RBC  model, using data for the post-World- War-II U.S. economy, show that his model substantially overestimated the correlation of output  and inventory stocks. investment. productivity. consumption. The most common measure of productivity shocks is known as total factor production. average labor productivity. the level of labor hoarding.  the Solow residual.
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One important reason that measured productivity can vary over the business cycle, even though 
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