Real Business Cycle Theory Would Emphasize the Ability of a Beneficial

question 131

Multiple Choice

Real business cycle theory would emphasize the ability of a beneficial supply shock to shift the __________ curve rightward and __________ Real GDP.

• A) AD; lower
• B) AD; raise
• C) LRAS; lower
• D) LRAS; raise

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Definitions:

CPI

This index, named the Consumer Price Index, assesses the cumulative weighted prices of a collection of consumer-related goods and services, with categories including transportation, healthcare, and food.

Property Tax

A tax on property, usually real estate, that owners pay to local governments, based on the assessed value of the property.

Assessed Value

The valuation placed on property by a public tax assessor for purposes of taxation.

Tuition Fee Increases

Refers to the rise in the cost of education at institutions such as universities and colleges over time.