In the real business cycle model, an increase in current total factor productivity leads to
A) an increase in investment.
B) a decrease in investment.
C) no change in investment.
D) an ambiguous response of investment.
A
You might also like to view...
Which of the following is considered a contributive standard for the distribution of income?
A) rewarding workers according to their productivity B) rewarding workers according to their needs C) rewarding workers according to the number of their dependents D) all of the above
When aggregate demand meets aggregate supply in the vertical portion of the aggregate supply curve,
A) an increase in demand will cause prices to rise but no change in output. B) an increase in demand will cause output to rise but no change in prices. C) an increase in demand will cause prices to fall but no change in output. D) an increase in demand will cause output to fall but no change in prices.