If there is a permanent increase in the production function, Business Economics

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If there is a permanent increase in the production function

If there is a permanent increase in the production function that shifts the aggregate supply curve by 20 units to the right, then so long as there is no change in the expected profit stream of projects, the cost of projects, or uncertainty of the future profit change, consumption will increase by units.

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Business Economics: If there is a permanent increase in the production function

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