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Assume the marginal product of labor (M PL) is given by the following _A K MPL-z'lL whereA is a parameter that captures technology. Assume that

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Assume the marginal product of labor (M PL) is given by the following _A K MPL-z'lL whereA is a parameter that captures technology. Assume that K=4000 and the labor supply in the economy is LS=1000. Consider the information in Box 1. The minimum real wage is still 2. However, assume now that firms invest in technologies that make workers more productive, so thatA=3. AsA rises from 1 to 3 Q) the unemployment rate will fall, but the real wage will not change 0 None of the other answers 0 the unemployment rate will not change and the real wage will rise 0 the unemployment rate will rise and the real wage will rise 0 the unemployment rate will fall and real wage will rise

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