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In Real Business Cycle Theory, a Decrease in Productivity Leads

Question 8

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 labour.
B) a decrease in the demand for loanable funds.
C) a rise in the real wage rate.
D) a fall in the real interest rate.
E) a decrease in the supply of labour.

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