Multiple Choice
In the real business cycle model, a persistent increase in total factor productivity
A) increases the real wage and increases the price level.
B) increases the real wage and decreases the price level.
C) decreases the real wage and increases the price level.
D) decreases the real wage and decreases the price level.
E) results in no change in the real wage and the price level.
Correct Answer:
Verified
Correct Answer:
Verified
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