If output begins to grow substantially faster than capital and labor inputs, then the real business cycle model predicts, ceteris paribus, ________
A) an increase in inflation
B) a decrease in employment
C) a decrease in investment
D) a business cycle expansion
D
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Which of the following represent examples of adverse selection?
A) Unhealthy people are more likely to want health insurance. B) Careless drivers purchasing extra auto insurance. C) Risk averse individuals choosing to buy extra insurance. D) all of the above E) A and B only
An increase in the inflation rate of one country relative to another country will probably cause
A) an increase in exports for the inflating country. B) a balance of trade deficit for the inflating country. C) a current account surplus for the inflating country. D) an increase in the amount of official reserves held by the inflating country's central bank.
An increase in the budget deficit causes domestic interest rates
a. and investment to rise. b. to rise and investment to fall. c. to fall and investment to rise. d. and investment to fall.
One opportunity cost associated with going to college is
A. paying for the costs of food prepared at home. B. giving up employment possibilities while in college. C. paying for room, board, and other living expenses. D. paying tuition.