In Real Business Cycle Theory, the Supply of Labour

question 17

Multiple Choice

In real business cycle theory, the supply of labour

• A)increases if the demand for labour decreases.
• B)increases if the real interest rate falls.
• C)increases if the demand for loanable funds decreases.
• D)is not influenced by changes in the real interest rate.
• E)increases if the real interest rate rises.

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Definitions:

Discharged Duty

The completion or fulfilment of a legal or moral obligation, relieving the individual or entity from further responsibilities.

Express Condition

A stipulation in a contract that explicitly outlines a requirement or condition that must be met for the contract's terms to be fulfilled or action to take place.

Implied-in-Fact

A type of contract formed by the conduct of the parties involved, rather than written or spoken words.

Implied-in-Law

A term or condition not expressly stated but inferred by the nature of the transaction or the parties' conduct, as recognized by law.