In the Real Business Model, a Persistent Increase in Total

question 41

Multiple Choice

In the real business model, a persistent increase in total factor productivity causes

• A) real wages to fall.
• B) the price level to rise.
• C) real interest rates to rise.
• D) the output demand curve shifting less than the output supply curve.
• E) the money supply to shift right.

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Definitions:

Stop-Payment Order

A request made to a bank to cancel a cheque that has not been processed yet.

Reasonable Opportunity

An equitable standard ensuring individuals have a fair chance to take action or defend themselves within a certain timeframe or under certain conditions.

Alteration

A change or modification in something, often referring to physical changes to documents or objects.

Drawer

In the context of financial instruments, the individual or entity that writes and signs a check, effectively instructing the bank to pay the specified amount to the party named or to the bearer.