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9.Industries that are extremely sensitive to the business cycle are the 10.You want to invest in a firm whose profits show small fluctuations throughout the business cycle. Which of the following would you invest in? 11.Which of the following macroeconomic variables is countercyclical? 12.Which of the following is nota primary cause of business cycle fluctuations, according to real business cycle theory?
13.A temporary adverse productivity shock would 14.In the classical IS—LM/AD—ASmodel, a beneficial productivity shock would ________ output, ________ the real interest rate, and ________ the price level. 15.One important reason why the Solow residual may be strongly procyclical even if the actual technology used in production doesn't change is that 16.If the utilization rates of capital and labor are procyclical, then 17.Critics of the RBC approach argue that it's hard to find productivity shocks large enough to cause business cycles. What is the RBC
counterargument to this criticism?