When Drawn Against the Real Interest Rate, the Output Demand

question 14

Multiple Choice

When drawn against the real interest rate, the output demand curve shifts to the right when

• A) current total factor productivity z increases.
• B) current total factor productivity z decreases.
• C) future total factor productivity z' increases.
• D) future total factor productivity z' decreases.
• E) current and future total factor productivity z' decreases.