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

D

Economics

You might also like to view...

What are the main characteristics that make it more likely for a cartel to enforce agreements among participating members?

What will be an ideal response?

Economics

In a long-run equilibrium in a perfectly competitive market, firms are selling at a price equal to average cost

a. True b. False Indicate whether the statement is true or false

Economics