The Equilibrium Effects of a Temporary Increase in Total Factor

question 34

Multiple Choice

The equilibrium effects of a temporary increase in total factor productivity include

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

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Definitions:

Brain Function

The activities and processes that take place in the brain to support physical, cognitive, and emotional life.

Somatosensory Area

A region of the brain responsible for processing sensory information from various parts of the body, relating to touch, temperature, and pain.

Cortex

The outer layer of the cerebrum in the brain, involved in complex functions including thought, memory, and consciousness.

Somatosensory Area

A region of the cortex involved in processing sensory information from the body, including touch, temperature, and pain.