Question: Suppose a model in which total factor productivity, z , affects the productivity of government production just as it affects private production. That is, suppose

Suppose a model in which total factor productivity, z , affects the productivity of government production just as it affects private production. That is, suppose that when the government collects taxes, it aquires goods that are then turned into government-produced goods according to G=zT so that z units of governments are produced for each units of tax collected. What are the effects of a decrease in z on output, consumption, employment, and the real wage, treating G as given. Explain your results

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