Question

Ragnar Frisch modeled these things with impulse and propagation mechanisms. Burns and Mitchell’s 1946 book on “measuring” these things began the NBER’s research on their chronology. These things cause short-term fluctuations in time-series data that can be removed by the Hodrick–Prescott filter. (20[1])Kydland and Prescott’s “real” theory of these things (20[1])argues that they are efficient responses to productivity shocks, (20[1])and that monetary policy is ineffective in (*) smoothing them. (10[2])These periods (10[1])are (10[1])driven by (10[2])creative (10[1])destruction, (10[1])according (10[2])to Joseph Schumpeter. (10[1])Output and employment (10[1])hit lows in the troughs of these periods. Alternating “booms” and “busts” characterize, for 10 points, what oscillations in the general level of economic activity? (10[5])■END■ (10[6])

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