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

[bobypop]

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 raise GDP.
  D) increases in aggregate demand lower GDP.

Question 2

Assume the United States is the domestic country and China is the foreign country. Which of the following might increase the real exchange rate between the United States and China?
 
  A) an increase in the price level in the United States.
  B) an increase in the price level of China
  C) a depreciation of the dollar
  D) an appreciation of the yuan

[snackralk]

Answer to Question 1

A

Answer to Question 2

A

[bobypop]

Excellent

[mohan]

Great answer, keep it coming