According to real business cycle (RBC) theory, a change in the quantity of money leads to
A. a change in the price level and in real GDP.
B. a change in the price level but no change in real GDP.
C. a change in investment and real GDP.
D. a change in the real wage rate and the money wage rate.
Answer:B
According to real business cycle (RBC) theory, a change in the quantity of money leads to
A. a change in the price level and in real GDP. B. a change in the price level but no change in real GDP. C. a change in investment and real GDP. D. a change in the real wage rate and the money wage rate.