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Microeconomics

The economy is initially in its long-run equilibrium. The outbreak of the pandemic has increased the speed of automation and artificial intelligence (AI); as a result, the spending on automation and AI increases by 10%. a) According to the long-run classical model, what happens to the equilibrium levels of output, real interest rate, and investment? What happens to the real wage and the real rental price of capital? Explain your answer with the a

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25 Other / Other University Of Toronto / MGEB06 18 Nov 2020