Question
Determine the equilibrium effects of an anticipated increase in the future total factor productivity in the real intertemporal model. (IN THE PARAGRAPH BELOW CHOOSE THE
Determine the equilibrium effects of an anticipated increase in the future total factor productivity in the real intertemporal model.
(IN THE PARAGRAPH BELOW CHOOSE THE BEST OPTION THAT IS IN THE BRACKETS IN THE PARAGRAPH BELOW)
An anticipated increase in the future total factor productivity results in (AN AMBIGUOUS EFFECT ON, AN INCREASE IN, A DECREASE IN, OR NO CHANGE IN) aggregate output, (AN AMBIGUOUS EFFECT ON, AN INCREASE IN, A DECREASE IN, OR NO CHANGE IN) the real interest rate, (AN AMBIGUOUS EFFECT ON, AN INCREASE IN, A DECREASE IN, OR NO CHANGE IN)consumption, (AN AMBIGUOUS EFFECT ON, AN INCREASE IN, A DECREASE IN, OR NO CHANGE IN)
investment, (AN AMBIGUOUS EFFECT ON, AN INCREASE IN, A DECREASE IN, OR NO CHANGE IN)employment, and (AN AMBIGUOUS EFFECT ON, AN INCREASE IN, A DECREASE IN, OR NO CHANGE IN) the real wage.
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