alleryStart learning →Robert Lucas argued that the welfare cost of business cycles is:
AEnormous
BRising yearly
CVery small
DUnmeasurable
Answer & Solution
Correct answer: C. Very small
Lucas held that the welfare cost is very small to negligible, so governments should focus on long-term growth.
Keep practising Business Cycles
Browse all Business Cycles questions for CA Foundation, or explore more Business Economics topics.
Related questions
Double-dip recessions are described as which shape?A short, sharp contraction followed by rapid recovery is called which shaped recession?A recession with GDP down by 10 percent, or lasting three or four years, is called:The UK and Canada define a recession as GDP falling for:A recession is best described as a business cycle:Compared with long-term trends, business cycles are usually seen as a:A one-off change such as a worker strike over a year or two is usually regarded as:Which years mark the Great Depression in the economic history of the West?