Effect of advance in technology in market for loanable funds


Question: Suppose that the business cycle in the United States is best described by RBC theory. An advance in technology increases productivity.

Q1. Draw a diagram to show the effect of the advance in technology in the market for loanable funds.

Q2. Draw a diagram to show the effect of the advance of technology in the labor market.

Q3. What is the when-to-work decision when technology advances?

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Macroeconomics: Effect of advance in technology in market for loanable funds
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