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Unformatted text preview: se in the real interest rate.
C) a decrease in the real wage and an increase in the real interest rate.
D) an increase in the real wage and a decrease in the real interest rate.
E) a decrease in the real wage and a decrease in the real interest rate. 22) 23) In response to a temporary increase in government spending, the representative consumer
A) more and takes more leisure.
B) more and takes less leisure.
C) the same amount as leisure.
D) less and takes less leisure.
E) less and takes more leisure. 23) 24) How many of the following business cycle facts can be explained if the primary cause of business
cycles is temporary changes in total factor productivity: procyclical consumption, procyclical
investment, procyclical employment, and procyclical real wages?
E) none 24) 25) When drawn against the real interest rate, the output demand curve shifts to the right when
A) future total factor productivity z decreases.
B) current and future total factor productivity z d...
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This document was uploaded on 02/24/2014 for the course ECON 2152 at UWO.
- Spring '13