In real business cycle theory

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Reference no: EM131393545

1. A fall in the expected price level leads to en expectation that real wages will ______ , which will cause people to work ______, shifting the SRAS curve ______.

A rise: more : rightward

B fall: more: rightward

C fall: less: leftward

D Rise: less: leftward

2. In real business cycle theory, Business cycle expansions begin as a result of changes in

A) government spending

B) investment Demand

C) aggregate demand

D) long run aggregate supply

E) consumption

Reference no: EM131393545

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