According to the real business cycle model, A) increases in ...

[abc]

According to the real business cycle model,
 
  A) increases in aggregate demand do not affect GDP.
  B) increases in aggregate demand lower the price level.
  C) increases in aggregate demand lower GDP.
  D) increases in aggregate demand raise GDP.

Question 2

What does it mean when one currency is pegged against another currency?
 
  What will be an ideal response?

[Ahnyah]

Answer to Question 1

A

Answer to Question 2

One currency is pegged against another currency when a country decides to keep the exchange rate between its currency and another currency fixed.