In the View of Real-Business-Cycle Theory, an Increase in the Long-Run

question 36

Multiple Choice

In the view of real-business-cycle theory, an increase in the long-run aggregate supply would lead to a(n)

• A) increase in aggregate demand by an equal amount, so real output would increase and the price level would be unchanged.
• B) increase in aggregate demand by an equal amount, so real output and the price level would increase.
• C) decrease in aggregate demand, so real output would increase and the price level would decrease.
• D) decrease in aggregate demand, so real output and the price level would increase.

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Definitions:

Communication Process

The method by which information is transferred from a sender to a receiver with the intention of informing or inducing action.

Marketing Department

A division within a company focused on promoting and selling products or services, market research, and advertising strategies.

Transmitter

A device or system that sends signals, data or messages from one place to another, often used in telecommunications.

Communication Media

Various channels through which information is transmitted from one entity to another, including print, digital, and broadcast mediums.