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:

Marginal

Incremental, additional, or extra; used to describe a change in an economic variable.

Incremental

Describes small, gradual changes or increases made over a period of time.

Economic Information

Data related to the production, distribution, and consumption of goods and services that informs decision-making.

Acquire

To obtain ownership of something, such as a company purchasing another company or an individual acquiring an asset.