A cost due to an increase in activity is called

If the realized real interest rate in an economy is 6%, the nominal interest rate is 8%, and the expected inflation rate is 8%, then the realized inflation rate in the economy is:

A) 2%. B) 4%. C) 8%. D) 6%.

According to real business cycle theorists,

A) fiscal policy explains most changes in output. B) price and wage rigidity explain most changes in output. C) efficiency wage theory explains wage rigidity. D) changes in output primarily represent changes in the natural level of output. E) fiscal policy explains most changes in efficiency wage theory.