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

question 60

Multiple Choice

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

• A)increase;increases;does not change;fall
• B)increase;increases;does not change;rise
• C)decrease;decreases;decreases;fall
• D)increases;increases;increases;rise
• E)increases;increases;increases;fall

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Definitions:

Factory Equipment

The machinery and tools used in the manufacturing process of a product, typically considered a long-term asset.

Administrative Expense

Costs related to the general operation of a company, such as salaries of executive personnel, office supplies, and utilities, not directly related to production or sales.

Cost of Goods Manufactured

The total production cost of goods completed during a specific period, including materials, labor, and overhead.

Finished Goods

Items that have finished the production stage and are available for purchase by buyers.