Multiple Choice
According to real business cycle theory, a fall in the real interest rate _______ the supply of labour and _______ employment.
A) decreases; increases
B) increases; increases
C) increases; decreases
D) decreases; decreases
E) does not change; does not change
Correct Answer:

Verified
Correct Answer:
Verified
Related Questions
Q68: A movement down along the short- run
Q69: Use the figure below to answer the
Q70: Use the table below to answer the
Q71: Use the figure below to answer the
Q72: Suppose that the money prices of raw
Q74: The key difference between new classical cycle
Q75: Suppose that a severe shock that decreases
Q76: Real business cycle theorists believe that the
Q77: In real business cycle theory, the supply
Q78: A forecast based on all the relevant