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According to the Real Business Cycle Theory, in an expansion caused by a permanent increase in technology (i.e. both z and z' increase), a. r
According to the Real Business Cycle Theory, in an expansion caused by a permanent increase in technology (i.e. both z and z' increase),
a. r decreases, Y decreases, and P decreases.
b. r decreases, Y increases, and P increases.
c. r increases, Y decreases, and P decreases.
d. r decreases, Y increases, and P decreases.
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