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Determine with the aid of diagrams the effects

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Using the Real Intertemporal Model seen in class, suppose there is a shift in the representative consumer's preferences: namely, the consumer prefers, given the market real interest rate, to consume less current consumption good and more current leisure.

Determine with the aid of diagrams the effects of this on current aggregate output, current employment, the current real wage and real interest rate.

Reference no: EM132405681

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