Author Question: An important critique of real business cycle theory is the belief that cyclical movements in total ... (Read 43 times)

dakota nelson · **on:** Jun 30, 2018

An important critique of real business cycle theory is the belief that cyclical movements in total factor productivity

A) rarely occur.
B) may, in part, be an artifact of measurement error.
C) lead to imperceptible changes in labor demand.
D) are too small to account for the size of fluctuations in real GDP.

Question 2

High inflation that persists beyond the ending of expansionary policies is probably ________.

A) demand-pull inflation
B) Humphrey-Hawkins inflation
C) cost-push inflation
D) a result of unemployment remaining below the natural rate
E) none of the above