According to the Real Business Cycle Theory, Technological Advances

question 244

Multiple Choice

According to the real business cycle theory, technological advances

• A) increase the marginal product of labor, which causes real wages and output to decline.
• B) decrease the marginal product of labor, which causes real wages and output to increase.
• C) increase the marginal product of labor, which causes real wages to increase and output to decline.
• D) increase the marginal product of labor, which causes real wages and output to increase.

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Definitions:

Critical Thinking

The process of objectively analyzing and evaluating an issue in order to form a judgment.

Humility

The quality of having a modest or low view of one's importance, allowing individuals to acknowledge their faults and limitations.

Self-confidence

The belief in one's own abilities and judgment, leading to a sense of assurance in tackling various tasks or challenges.

Supportiveness

The quality of providing encouragement or assistance, often fostering a positive environment.