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smitch6 smitch6
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Posts: 548
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6 years ago
One potential weakness of the coordination failure model as an explanation of business cycles is that
A) evidence supporting intertemporal substitution as an important determinant of labour supply is weak.
B) evidence supporting the existence of increasing returns at the aggregate level is weak.
C) it fails to explain several of the key business cycle regularities.
D) it requires that consumers not behave in a rational manner.
E) the Bank of Canada does not use all available information.
Textbook 
Macroeconomics, Canadian Edition

Macroeconomics, Canadian Edition


Edition: 5th
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6 years ago
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