(Solved):Suppose there is a shift in the representative consumer’s preference, namely, the consumer prefers, given the market real interest rate, to consume less current Leisure and more current consumption… View Answer

Question:

Suppose there is a shift in the representative consumer’s preference, namely, the consumer…

Suppose there is a shift in the representative consumer’s preference, namely, the consumer prefers, given the market real interest rate, to consume less current Leisure and more current consumption goods.

Determine the effect of this on current aggregate output, current employment, the current real wage, current consumption,

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