Multiple Choice
In real business cycle theory, a decrease in productivity leads to all of the following events EXCEPT
A) a decrease in the demand for labor.
B) a decrease in investment demand.
C) a rise in the real wage rate.
D) a fall in the real interest rate.
Correct Answer:

Verified
Correct Answer:
Verified
Q242: When the price level is rising and
Q243: Stagflation occurs when the SAS curve shifts
Q244: The short-run Phillips curve is vertical at
Q245: Inflation describes the event of increasing output
Q246: The key difference between the new classical
Q248: A one-time increase in the price of
Q249: The monetarist theory of the business cycle
Q250: Explain how the expected inflation rate affects
Q251: When there is a cost-push inflation<br>A) workers
Q252: Cost-push inflation starts with<br>A) an increase in