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5. 10 POINTS (Chapter 11, Problem 9] Suppose that there is a permanent increase in total factor productivity. That is, both current-period and future-period productivities

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5. 10 POINTS (Chapter 11, Problem 9] Suppose that there is a permanent increase in total factor productivity. That is, both current-period and future-period productivities z and 2' go up. Determine the implications of this for current macroeconomic variables, and show how the impact differs from the case where total factor productivity is expected to increase only temporarily. Explain your results

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