Suppose that 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 acquires goods that are then turned into government-produced goods according to $\mathrm{G}=\mathrm{zT}$, so that $\mathrm{z}$ units of government goods are produced for each unit of taxes collected. With the government setting $\mathrm{G}$, an increase in z will imply that a smaller quantity of taxes are required to finance the given quantity of government purchases, G. Under these circumstances, use a diagram to determine the effects of an increase in $\mathrm{z}$ on output, consumption, employment, and the real wage, treating $\mathrm{G}$ as given. (i) Click the icon to view information about the initial model used here. Aggregate output Consumption Employment \begin{tabular}{|l|l|} \hline $\mathbf{\nabla}$ & The real wage \\ \hline \end{tabular} After the increase in z under these circumstances, compared to a case where initially equilibrium aggregate output, consumption, employment, and the real wage are all identical but where total factor productivity does not affect the productivity of government production, aggregate output employment and the real wage
Suppose that 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 acquires goods that are then turned into government-produced goods according to G=zT, so that z units of government goods are produced for each unit of taxes collected. With the government setting $\mathrm{G}$, an increase in z will imply that a smaller quantity of taxes are required to finance the given quantity of government purchases, G. Under these circumstances, use a diagram to determine the effects of an increase in $z$ on output, consumption, employment, and the real wage, treating $\mathrm{G}$ as given. 1. Click the icon to view information about the initial model used here.
Suppose that 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 acquires goods that are then turned into government-produced goods according to G=zT, so that z units of government goods are produced for each unit of taxes collected. With the government setting $\mathrm{G}$, an increase in z will imply that a smaller quantity of taxes are required to finance the given quantity of government purchases, G. Under these circumstances, use a diagram to determine the effects of an increase in $z$ on output, consumption, employment, and the real wage, treating $\mathrm{G}$ as given. 1. Click the icon to view information about the initial model used here. Aggregate output Consumption Employment The real wage After the increase in $z$ under these circumstances, compared to a case wh real wage are all identical but where total factor productivity does not affect must increase. must not change. may increase, decrease, or not change. must decrease. ition, employment, and the gate output and the
Suppose that 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 acquires goods that are then turned into government-produced goods according to G $=z T$, so that $z$ units of government goods are produced for each unit of taxes collected. With the government setting $\mathrm{G}$, an increase in z will imply that a smaller quantity of taxes are required to finance the given quantity of government purchases, $G$. Under these circumstances, use a diagram to determine the effects of an increase in $z$ on output, consumption, employment, and the real wage, treating $\mathrm{G}$ as given. (i) Click the icon to view information about the initial model used here. must increase. must not change. may increase, decrease, or not change. must decrease. compared to a case where initially equilibrium aggregate output, consumption, employment, and the oductivity does not affect the productivity of government production, aggregate output in employment and the
Suppose that 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 acquires goods that are then turned into government-produced goods according to $\mathrm{G}=\mathrm{z} T$, so that $\mathrm{z}$ units of government goods are produced for each unit of taxes collected. With the government setting $\mathrm{G}$, an increase in $\mathrm{z}$ will imply that a smaller quantity of taxes are required to finance the given quantity of government purchases, G. Under these circumstances, use a diagram to determine the effects of an increase in $\mathrm{z}$ on output, consumption, employment, and the real wage, treating $\mathrm{G}$ as given. (1) Click the icon to view information about the initial model used here. Consumption Employment After the increase in z under these circumstances, compa। real wage are all identical but where total factor productivit must increase. real wage must decrease. may increase, decrease, or not change. must not change. output, consumption, employment, and the roduction, aggregate output and the
Suppose that 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 acquires goods that are then turned into government-produced goods according to $\mathrm{G}=\mathrm{z} T$, so that $\mathrm{z}$ units of government goods are produced for each unit of taxes collected. With the government setting $\mathrm{G}$, an increase in z will imply that a smaller quantity of taxes are required to finance the given quantity of government purchases, G. Under these circumstances, use a diagram to determine the effects of an increase in $\mathrm{z}$ on output, consumption, employment, and the real wage, treating $\mathrm{G}$ as given. 1. Click the icon to view information about the initial model used here. After the increase in z under these circumstances, compared to a case where initially equilibrium aggregate output, consumption, employment, and the real wage are all identical but where total factor productivity does not affect the productivity of government production, aggregate output will be higher, will be the same, could be higher, lower, or the same, will be lower,
Suppose that 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 acquires goods that are then turned into government-produced goods according to $\mathrm{G}=\mathrm{z} T$, so that $\mathrm{z}$ units of government goods are produced for each unit of taxes collected. With the government setting $\mathrm{G}$, an increase in $\mathrm{z}$ will imply that a smaller quantity of taxes are required to finance the given quantity of government purchases, G. Under these circumstances, use a diagram to determine the effects of an increase in $\mathrm{z}$ on output, consumption, employment, and the real wage, treating $\mathrm{G}$ as given. 1. Click the icon to view information about the initial model used here. Aggregate output Consumption Employment After the increase in z under these circumstances, compared to a case where initially equilibrium aggregate output, consumption, employment, and the real wage are all identical but where total factor productivity does not affect the productivity of government production, aggregate output real wage employment will be higher, will be the same, will be lower, could be higher, lower, or the same,
Suppose that 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 acquires goods that are then turned into government-produced goods according to G $=z T$, so that $z$ units of government goods are produced for each unit of taxes collected. With the government setting $\mathrm{G}$, an increase in z will imply that a smaller quantity of taxes are required to finance the given quantity of government purchases, G. Under these circumstances, use a diagram to determine the effects of an increase in $z$ on output, consumption, employment, and the real wage, treating $\mathrm{G}$ as given. (i) Click the icon to view information about the initial model used here. Aggregate output Consumption Employment After the increase in z under these circumstances, compared to a case where initially equilibrium aggregate output, consumption, employment, and the real wage are all identical but where total factor productivity does not affect the productivity of government production, aggregate output will be lower, real wage will be the same, could be higher, lower, or the same, will be higher,
Suppose that 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 acquires goods that are then turned into government-produced goods according to G $=z T$, so that $z$ units of government goods are produced for each unit of taxes collected. With the government setting $\mathrm{G}$, an increase in z will imply that a smaller quantity of taxes are required to finance the given quantity of government purchases, G. Under these circumstances, use a diagram to determine the effects of an increase in $\mathrm{z}$ on output, consumption, employment, and the real wage, treating $\mathrm{G}$ as given. (i) Click the icon to view information about the initial model used here. Aggregate output Consumption Employment The real wage After the increase in z under these circumstances, compared to a case where initially equilibrium aggregate output, consumption, employment, and the real wage are all identical but where total factor productivity does not affect the productivity of government production, aggregate output real wage will be the same. will be higher. could be higher, lower, or the same. will be lower.