Author Question: The equilibrium effects of a prospective future increase in total factor productivity include A) ... (Read 114 times)

daltonest1984 · **on:** Jun 30, 2018

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

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

Question 2

Early industrialization was characterized by labor-saving technology, and this caused U.S. wages to be lower in the manufacturing industry than would otherwise have been the case.

Indicate whether the statement is true or false