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Subsequently, businesses significantly increased their spending on capital equipment in order to take advantage of the substantial technological improvement. What happens to equilibrium (1) economic output, (2) employment, (3) the real wage rate, (4) the capital stock, and (5) the real rental cost of capital. Be sure to describe why these changes take place.

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M939740

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