Economistsuse the neoclassical growth model to explain fluctuations in the business cycle becausecan; the model shows how economic growth changes when the factors of production (capital, labour force and technology) change.O cannot; the model does not take into account technology changes.O cannot; the model only explains what determines the long term trends in output or output per labour.O can; as a long-run model, it captures business cycles over very long periods of time.O cannot; the model is more focused on government activity than private sector activity.O O

The business cycle can be defined as the continuous changes in the phases of the business cycle,…

Economists use the neoclassical growth model to explain fluctuations in the business cycle because O can; the model shows how economic growth changes when the factors of production (capital, labour force and technology) change. O cannot; the model does not take into account technology changes. cannot; the model only explains what determines the long term trends in output or output per labour. O can; as a long-run model, it captures business cycles over very long periods of time. O cannot; the model is more focused on government activity than private sector activity. O O O

Economists use the neoclassical growth model to explain fluctuations in the business cycle because O can; the model shows how economic growth changes when the factors of production (capital, labour force and technology) change. O cannot; the model does not take into account technology changes. cannot; the model only explains what determines the long term trends in output or output per labour. O can; as a long-run model, it captures business cycles over very long periods of time. O cannot; the model is more focused on government activity than private sector activity. O O O

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter9: Classical Macroeconomics And The Self Regulating Economy

Section9.3: The Self Regulating Economy

Problem 2ST

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