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johnpaul92 johnpaul92
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8 years ago
One important reason why the Solow residual may be strongly procyclical even if the actual technology used in production doesn't change is that
A) employment is procyclical.
B) the coefficients (a and 1 - a) on capital and labor in the production function are procyclical.
C) resource utilization is procyclical.
D) demand shocks are the dominant force determining the business cycle.
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Macroeconomics

Macroeconomics


Edition: 8th
Authors:
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supamansupaman
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8 years ago
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johnpaul92 Author
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#2
8 years ago
Wow, you answered what I thought was impossible to answer, thank you!
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#3
8 years ago
Glad to be part of your success Wink Face
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