According to real business cycle theorists, an increase in total ...

[cabate]

According to real business cycle theorists, an increase in total factor productivity could lead to an increase in the nominal money supply due to
 
  A) the cyclical behavior of tax collections and attempts by the Federal Reserve to stabilize real output.
  B) the Federal Reserve's attempts to stabilize real output and the price level.
  C) the Federal Reserve's attempts to stabilize the price level and banking sector expansion of deposit money.
  D) banking sector expansion of deposit money and the cyclical behavior of tax collections.

Question 2

In an environment characterized by perfect competition, we expect that ________.
 
  A) there are very few firms in the economy
  B) there are many firms in the economy but a very few have the lion's share of the industry
  C) the are many small firms in the economy and every single firm is a price taker
  D) the government sets prices for all firms
  E) none of the above

[Tonyam972]

Answer to Question 1

C

Answer to Question 2

C

[cabate]

Excellent

[yeungji]

Gracias!