This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Total factor productivity shocks are not a good explanation of economic fluctuations in the New ... (Read 44 times)

sheilaspns

  • Hero Member
  • *****
  • Posts: 567
on: Jun 30, 2018
Total factor productivity shocks are not a good explanation of economic fluctuations in the New Keynesian model for all the following reasons except
 
  A) they do not generate output fluctuations.
  B) employment drops when TFP increases.
  C) the real wage drops when TFP increases.
  D) they do not generate price fluctuations.

Question 2

Critics of real business cycle analysis suggest that the persuasiveness of the model may be limited by the existence of ________.
 
  A) flexible wages and prices
  B) rising wages
  C) voluntary unemployment
  D) labor hoarding


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

blakeserpa

  • Sr. Member
  • ****
  • Posts: 338
Reply #1 on: Jun 30, 2018
Answer to Question 1

C

Answer to Question 2

D


sheilaspns

  • Member
  • Posts: 567
Reply 2 on: Jun 30, 2018
YES! Correct, THANKS for helping me on my review

jordangronback

  • Member
  • Posts: 339
Reply 3 on: Yesterday
Great answer, keep it coming :)

« previous next »
 

Did you know?

About 100 new prescription or over-the-counter drugs come into the U.S. market every year.

Did you know?

Signs of depression include feeling sad most of the time for 2 weeks or longer; loss of interest in things normally enjoyed; lack of energy; sleep and appetite disturbances; weight changes; feelings of hopelessness, helplessness, or worthlessness; an inability to make decisions; and thoughts of death and suicide.

Did you know?

Oliver Wendell Holmes is credited with introducing the words "anesthesia" and "anesthetic" into the English language in 1846.

Did you know?

The familiar sounds of your heart are made by the heart's valves as they open and close.

Did you know?

There can actually be a 25-hour time difference between certain locations in the world. The International Date Line passes between the islands of Samoa and American Samoa. It is not a straight line, but "zig-zags" around various island chains. Therefore, Samoa and nearby islands have one date, while American Samoa and nearby islands are one day behind. Daylight saving time is used in some islands, but not in others—further shifting the hours out of sync with natural time.

Draw and label a diagram and explain how a factor-dependent transcription (rho-dependent) terminator Draw and label a diagram and explain how a factor-dependent transcription (rho-dependent) terminator
Demographic change and the effect on people social, and economic life Demographic change and the effect on people social, and economic life
Politics, Power and the Common Good: An Introduction to Political Science, 5/E Politics, Power and the Common Good: An Introduction to Political Science, 5/E
Anglin's estimates of the total vocabulary of children in Grades 1, 3, and 5 Anglin's estimates of the total vocabulary of children in Grades 1, 3, and 5
economic question economic question
Political and Economic Systems Political and Economic Systems
Video: Hormonal feedback loop components

For a complete list of videos, visit our video library