According to Real Business Cycle Theory Proponents, an Increase in Productivity

question 156

Multiple Choice

According to real business cycle theory proponents, an increase in productivity ________ the demand for loanable funds, ________ the demand for labor, and ________ the supply of labor. The real interest rate will ________.

• A) increases; increases; there is no change in; fall
• B) increases; increases; there is no change in; rise
• C) decreases; decreases; decreases; fall
• D) increases; increases; increases; rise

---

Definitions:

Stimulus-Response

A concept in psychology and physiology describing how organisms respond to stimuli in their environment.

Operant Conditioning

Learning that results from rewarding or reinforcing a particular behavior.

Genetics

The branch of biology that studies genes, genetic variation, and heredity in organisms, explaining how traits are passed from parents to offspring.

Environment

The surroundings or conditions in which an organism lives or operates.