The behavior of investment and real GDP in the United States after the
The behavior of investment and real GDP in the United States after the 1990s
A) is not consistent with the two-period model with production.
B) is consistent with the effects of an increase in the government deficit in the two-period model with production.
C) is consistent with the effects of an increase in optimism about future total factor productivity in the two-period model with production.
D) is consistent with the effects of a decrease in the government deficit in the two-period model with production.
ANSWER
C
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