Multiple Choice
In real business cycle theory, the supply of labour
A) decreases if the real interest rate rises.
B) increases if the nominal interest rate rises.
C) decreases if the real wage rate decreases.
D) decreases if the real interest rate falls.
E) is independent of the real interest rate.
Correct Answer:

Verified
Correct Answer:
Verified
Q72: Suppose that the money prices of raw
Q73: According to real business cycle theory, a
Q74: The key difference between new classical cycle
Q75: Suppose that a severe shock that decreases
Q76: Real business cycle theorists believe that the
Q78: A forecast based on all the relevant
Q79: Demand- pull inflation can start when<br>A)input costs
Q80: Use the figure below to answer the
Q81: A correctly anticipated increase in the quantity
Q82: Use the figure below to answer the