In the New Keynesian Model,an Increase in Current Total Factor

question 44

Multiple Choice

In the New Keynesian model,an increase in current total factor productivity

• A) shifts output supply right and opens a negative output gap.
• B) shifts output demand right and opens a positive output gap.
• C) shifts output demand left and opens a negative output gap.
• D) shifts output supply left and opens a negative output gap.
• E) shifts output supply right and opens a positive output gap.

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Definitions:

Ratio

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