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The novel coronavirus outbreak is a global pandemic unlike any living person has witnessed before. Since the beginning of the pandemic, there were has been over 100 million confirmed cases of

The novel coronavirus outbreak is a global pandemic unlike any living person has witnessed before. Since the beginning of the pandemic, there were has been over 100 million confirmed cases of COVID-19 across 219 countries and territories. Even when this is over, there will be a lasting negative impact on the global economy. Among other things, the pandemic will be a large negative impact on the global economy. Among other things, the pandemic will be a large negative shock to the total factor productivity (TFP) of countries across the world. For this question, use the one-period model to predict how each of the following variables will change, if at all, due to a decrease in TFP, and provide a brief discussion of explaining each answer. Note, you cannot use the income-expenditure identity to answer this question.

a) [3 marks] Output

b) [3 marks] Marginal product of labour

c) [3 marks]Real Wage

d) [3 marks]Consumption

e) [3 marks]Leisure

Apr 12 2021 View more View Less

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