The equilibrium effects of a prospective future increase in total factor productivity include
A) an increase in the real wage and an increase in the real interest rate.
B) an increase in the real wage and a decrease in the real interest rate.
C) a decrease in the real wage and an increase in the real interest rate.
D) a decrease in the real wage and a decrease in the real interest rate.
Correct Answer:
Verified
Q43: In response to a temporary increase in
Q44: In the real intertemporal model,an adverse sectoral
Q45: In the real intertemporal model,an adverse sectoral
Q46: A temporary increase in government spending that
Q47: The total government expenditure multiplier is less
Q49: The equilibrium effects of a temporary increase
Q50: The response of output following a natural
Q51: If future total factor productivity increases
A) labor
Q52: How many of the following business cycle
Q53: An increase in credit market frictions
A) decreases
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents