According to the Real Business Cycle Theory, an Increase in the Price

question 242

Multiple Choice

According to the real business cycle theory, an increase in the price of a resource, such as oil, that decreases the demand for loanable funds will _________employment and_________ real GDP.

• A) decrease; increase
• B) increase; decrease
• C) decrease; decrease
• D) increase; increase

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Definitions:

Government

An institution through which a society or community organizes and enforces its collective decisions, policies, and laws.

Principle of Justice

The fundamental moral and ethical guideline that dictates fairness in treatment, distribution of goods, and administration of laws.

Marx

Karl Marx, a 19th-century philosopher, economist, and revolutionary, known for his theories about capitalism and communism.

Human Right

A fundamental right that is believed to belong to every person, regardless of race, gender, nationality, ethnicity, language, religion, or any other status.