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    Exam 11: A Real Intertemporal Model with Investment
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    An Increase in Total Factor Productivity Causes
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An Increase in Total Factor Productivity Causes

Question 3

Question 3

Multiple Choice

An increase in total factor productivity causes


A) real wages to rise.
B) labour supply to fall.
C) the output supply curve to shift left.
D) real interest rates to rise.
E) the production function to shift up.

Correct Answer:

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