Author Question: The real business cycle model suggests that, with aggregate demand unchanged, increases in output ... (Read 73 times)

kellyjaisingh · **on:** Jun 30, 2018

The real business cycle model suggests that, with aggregate demand unchanged, increases in output would be associated with ________.

A) an increase in inflation
B) a decline in inflation
C) and unchanged price level
D) procyclical inflation

Question 2

Suppose that GDP is equal to 1000, national saving is equal to 200, the current account deficit is equal to 100, and the government budget deficit is equal to 50. Investment must equal

A) 150.
B) 200.
C) 250.
D) 300.