If Output Begins to Grow Substantially Faster Than Capital and Labor

question 50

Multiple Choice

If output begins to grow substantially faster than capital and labor inputs,then the real business cycle model predicts,ceteris paribus,________.

• A)an increase in inflation
• B)a decrease in employment
• C)a decrease in investment
• D)a business cycle expansion

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Definitions:

Personality

A combination of emotional, attitudinal, and behavioral response patterns of an individual that are characteristic over time and across situations.

Gratification

The state of being pleased or fulfilled.

Desires

Intense desires or aspirations for something to occur or exist.

Continuing Desire

An ongoing or persistent yearning or craving for something, often with emotional significance.