Initially, the nominal rate of interest is 8 percent and inflation is 4 percent. The nominal interest rate then rises to 12 percent and the inflation rate to 8 percent. It follows that the real rate of interest has

________ refers to alternating periods of economic expansion and economic recession in an economy

A) Fiscal policy B) Labor productivity C) The business cycle D) Positive economic analysis

In a perfectly competitive market, the average revenue curve of a firm is

A) the same as its total revenue curve. B) the same as its demand curve. C) the same its economic profits. D) the difference between its total revenue curve and its marginal revenue curve.