The substitution effect that results from a decrease in total factor productivity
A) is a shift from the labour input to the capital input.
B) involves substitution of government spending for consumption.
C) substitutes lump sum taxes for taxes on firms.
D) is zero.
E) is the substitution of consumption for leisure.
Correct Answer:
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Q49: An increase in total factor productivity involves
A)
Q50: Changes in government spending are not likely
Q51: An increase in total factor productivity shifts
Q52: Intertemporal substitution of labour suggests that
A) the
Q53: In the model where G = qt,
Q55: An increase in total factor productivity
A) increases
Q56: Real business cycle theory argues that the
Q57: Changes in government spending are not likely
Q58: To choose the optimal level of government
Q59: Government spending in the one-period model acts
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