An Increase in Total Factor Productivity in a Closed Economy

question 51

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

---

Definitions:

Commissive

Pertaining to the type of speech act or statement that commits the speaker to a particular course of action.

Speech Act

A term in linguistics and the philosophy of language referring to an utterance that performs an action (such as promising, ordering, greeting).

Eye Fixation

The act of focusing one's eyes on a single location or object for a period, allowing for detailed visual processing.

250 Milliseconds

A measurement of time often referenced in psychology and neuroscience to discuss the speed of cognitive processes, particularly in visual perception and decision making.