In the Real Business Cycle Model, a Persistent Increase in Total

question 5

Multiple Choice

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

• A) increases the real wage and increases the price level.
• B) increases the real wage and decreases the price level.
• C) decreases the real wage and increases the price level.
• D) decreases the real wage and decreases the price level.
• E) results in no change in the real wage and the price level.

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Definitions:

Resistive

In the context of technology, resistive often refers to a type of touch screen that registers input from pressure on its surface.

Network Interface Card (NIC)

An expansion card that enables a computer to connect other computers or to a cable modem to facilitate a high-speed Internet connection.

Computers

Electronic devices that can store, retrieve, and process data, and can execute a programmed list of instructions (a program).

Internet

A global system of interconnected computer networks that use the Internet protocol suite to communicate between networks and devices.