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:

Limited Partner

An investor in a partnership who has limited liability to the extent of their investment and does not participate in day-to-day management.

General Partner

refers to a member of a partnership who has unlimited liability and is active in the management of the partnership.

Certificate

An official document attesting to a certain fact, such as the completion of an educational course or the ownership of a financial security.