The Equilibrium Effects of a Prospective Future Increase in Total

question 25

Multiple Choice

The equilibrium effects of a prospective future increase in total factor productivity include

• A)a decrease in the real wage only.
• B)a decrease in the real wage and a decrease in the real interest rate.
• C)an increase in the real wage and a decrease in the real interest rate.
• D)a decrease in the real wage and an increase in the real interest rate.
• E)an increase in the real wage and an increase in the real interest rate.

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Definitions:

Attribution Theory

A psychological theory focused on how people explain their own and others' behaviors, attributing causes to either internal dispositions or external situations.

Satisfied Individuals

Persons who experience fulfillment or contentment in aspects of their life or work.

Flaws

Imperfections, faults, or weaknesses that detract from perfection and can affect performance or function.

Culture

The set of shared attitudes, values, goals, and practices that characterizes an institution, organization, or group.