Refer to Figure 10.8. Other things equal, a decrease in the nominal interest rate on money would best be represented by

The economy's marginal social benefit curve for a public good is equal to the ________

A) horizontal sum of the individual demand curves B) vertical sum of the individual marginal benefit curves C) horizontal sum of the individual marginal benefit curves D) vertical sum of the individual supply curves

According to real business cycle theory, a likely cause of an increase in employment is ________

A) an increase in the real wage B) an increase in aggregate demand C) a decrease in the real wage D) a decrease in the real interest rate