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In the one-period closed-economy equilibrium model, an increase of total factor productivity, in equilibrium, will lead to ______________. A.no change in the utility level B.more
In the one-period closed-economy equilibrium model, an increase of total factor productivity, in equilibrium, will lead to ______________.
A.no change in the utility level
B.more hours worked if the substitution effect is greater than the income effect
C.less hours worked if the substitution effect is greater than the income effect
D.a lower utility level if the substitution effect is greater than the income effect
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