Multiple Choice
According to the real business cycle theory, an increase in energy prices 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.
Correct Answer:
Verified
Correct Answer:
Verified
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