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Suppose that there is a shift in the representative consumer’s preferences. Namely, the consumer prefers, given...

Suppose that there is a shift in the representative consumer’s preferences. Namely, the consumer prefers, given the market real interest rate, to consume more current leisure and less current consumption goods. Find and explain the effects of this change on all current macro variables, including current output, employment, consumption, investment, the real wage and the real interest rate.

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