An Increase in Total Factor Productivity in a Closed Economy

Multiple Choice

An increase in total factor productivity in a closed economy

A) increases labour demand, increases the real wage, increases output and decreases the real interest rate.
B) increases labour demand, increases the real wage, increases output and increases the real interest rate.
C) increases labour demand, decreases the real wage, decreases output and increases the real interest rate.
D) increases labour demand, decreases the real wage, decreases output and decreases the real interest rate.
E) decreases labour demand, increases the real wage, increases output and decreases the real interest rate.