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

question 26

Multiple Choice

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

• A)increase both real income and the price level.
• B)increase real income but not change the price level.
• C)decrease real income but increase the price level.
• D)decrease both real income and the price level.

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Definitions:

Automated Clearinghouses

Networks that facilitate electronic money transfers and automated payments between banks.