An Increase in Total Factor Productivity in a Closed Economy

question 65

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

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Definitions:

Individual Choices

Decisions made by a person based on personal preference, values, or circumstances.

Public Service

Services provided by the government to its citizens, including education, healthcare, transportation, and law enforcement.

Financial Discipline

The practice of managing finances in a structured and controlled manner, often to achieve specific financial goals.

Nonprofit Organizations

Organizations that operate for the public or social benefit without the aim of making profits for owners or stakeholders.