
-In the above figure, starting at
, if there is an increase in technology that causes a permanent increase in production capabilities
A) aggregate supply would shift to
and
would shift to
.
B) aggregate supply would shift to
and
would shift to
.
C) aggregate supply would shift to
and
would shift to
.
D) aggregate supply would shift to
and then return to
.
Correct Answer:
Verified
Q201: The real business cycle theory
A)indicates that supply
Q202: One implication of coupling the rational expectations
Q206: Real business cycle theory emphasizes the effect
Q219: The real business cycle theory is based
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