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Consider the one-period model with lump-sum taxes, upward sloping labour supply curves, and downward sloping labour demand curves. A decrease in total factor productivity is
Consider the one-period model with lump-sum taxes, upward sloping labour supply curves, and downward sloping labour demand curves. A decrease in total factor productivity is a plausible cause of business cycles because it predicts: Question 10 options: government would decline and leisure would increase. consumption would decline and leisure would decline. government would increase and leisure would decline. consumption would decline and leisure would increase
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