According to the Real Business Cycle Theory, an Increase in an Input

Multiple Choice

According to the real business cycle theory, an increase in an input price, such as oil, will

A) increase both real Gross Domestic Product (GDP) and the price level.
B) increase real Gross Domestic Product (GDP) but not change the price level.
C) decrease real Gross Domestic Product (GDP) but increase the price level.
D) decrease both real Gross Domestic Product (GDP) and the price level.