In the real business cycle theory, during a period when output is falling,
a. workers are voluntarily giving up their jobs.
b. the quantity supplied of labor is falling.
c. aggregate productivity must be falling.
d. all of the above.
e. none of the above.
Question 2
The higher the marginal income tax rate, the
a. higher the MPC out of disposable income.
b. lower the MPC out of disposable income.
c. higher the autonomous expenditure multiplier.
d. lower the autonomous expenditure multiplier.
e. None of the above
