The Substitution Effect That Results from a Decrease in Total

question 59

Multiple Choice

The substitution effect that results from a decrease in total factor productivity

• A)substitutes lump sum taxes for taxes on firms.
• B)is the substitution of consumption for leisure.
• C)involves substitution of government spending for consumption.
• D)is zero.
• E)is a shift from the labour input to the capital input.

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