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Author Question: Real business cycle theorists take the comovement of aggregate output and Solow residuals as strong ... (Read 45 times)

ETearle

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on: Jun 30, 2018
Real business cycle theorists take the comovement of aggregate output and Solow residuals as strong confirmation that economic fluctuations are caused by ________.
 
  A) changes in aggregate demand
  B) changes in the money supply
  C) changes in the rate of inflation
  D) productivity shocks

Question 2

Asymmetric information discourages the movement of funds from savers to borrowers, because ________.
 
  A) big risks have high payoffs
  B) the safe choice is always preferable to the risky choice
  C) taking risks is inefficient
  D) the loss arising from a failed project must be borne by the borrower, rather than the lender


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mmpiza

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Reply #1 on: Jun 30, 2018
Answer to Question 1

D

Answer to Question 2

A


ETearle

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Reply 2 on: Jun 30, 2018
Thanks for the timely response, appreciate it

kthug

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Reply 3 on: Yesterday
Great answer, keep it coming :)

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