Question: (Chapter 11) Suppose there is a permanent increase in total factor productivity (i.e., both current productivity and future productivity rise). Determine the equilibrium effects of

(Chapter 11) Suppose there is a permanent increase in total factor productivity (i.e., both current productivity and future productivity rise). Determine the equilibrium effects of this on current aggregate output, current employment, current real wage and interest rate, current consumption, and current investment. Show how the impact differs from the case where total factor productivity increases only in the current period. Explain your results

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