In real business cycle theory, the supply of labour
A)increases if the nominal interest rate rises.
B)is independent of the real interest rate.
C)decreases if the real interest rate rises.
D)decreases if the real interest rate falls.
E)decreases if the real wage rate decreases.

Question

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The Answer of In real business cycle theory, the supply of labour
A)increases if the nominal interest rate rises.
B)is independent of the real interest rate.
C)decreases if the real interest rate rises.
D)decreases if the real interest rate falls.
E)decreases if the real wage rate decreases.

In Real Business Cycle Theory, the Supply of Labour