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:

Populist Party

The Populist Party, also known as the People's Party, was a political party in the United States that sought to represent the interests of farmers and laborers in the late 19th century.

Agrarian-Based

Agrarian-Based describes an economy or society that is primarily built around agriculture and farming as the main source of livelihood.

Third Party

A political party that operates in addition to the two major parties in a two-party system, often campaigning on niche or alternative policies.

Grover Cleveland

The 22nd and 24th President of the United States who is known for his integrity, commitment to reform, and opposition to the spoils system in government.