In June 2024
Answer to Question #142000 in Macroeconomics for edd
Suppose the depreciation rate of capital decreased at time t* permanently. How would this affect real wage rate, real rental rate, real interest rate and price level in long run and very-long run in a closed market economy?
If the depreciation rate of capital decreased at time t* permanently, then the real wage rate would increase, real rental rate would decrease, real interest rate would decrease and price level would increase in long run and very-long run in a closed market economy.
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