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

question 82

Multiple Choice

According to the real business cycle theory, an increase in an input price, such as oil, will

• A)increase both real Gross Domestic Product (GDP)and the price level.
• B)increase real Gross Domestic Product (GDP)but not change the price level.
• C)decrease real Gross Domestic Product (GDP)but increase the price level.
• D)decrease both real Gross Domestic Product (GDP)and the price level.

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Definitions:

Hydrothermal Vents

Openings in the seafloor that emit hot, mineral-rich water, supporting unique ecosystems.

Chemosynthetic Communities

Ecosystems that derive energy from chemical reactions, typically found in environments without sunlight, such as hydrothermal vents.

Euphotic Zone

The layer of the ocean where sunlight is sufficient for photosynthesis, supporting a majority of marine life.