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If the price (P) of a product temporarily increases, how would that affect current total factor productivity (z) or future total factor productivity (z')? Specifically,
If the price (P) of a product temporarily increases, how would that affect current total factor productivity (z) or future total factor productivity (z')? Specifically, would it cause an increase or a decrease in current total factor productivity (z) or future total factor productivity (z').
Please explain why.
Thank you.
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