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:
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Q32: In real business cycle theory, the supply
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Q34: Suppose that in response to a decrease
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Q36: Suppose the economy is in long- run
Q38: Inflation that starts because aggregate demand increases
Q39: Demand- pull inflation can start when
A)input costs
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Q41: Use the figure below to answer the
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