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.

---

Definitions:

Prima facie case

An established case proven by the facts until contradicted and overcome by other evidence.

Equal protection

A constitutional guarantee that no person or group will be denied the same protection of the laws that is enjoyed by other similarly situated individuals.

Constitutional guarantee

A commitment within a country's constitution that ensures certain rights and freedoms to its citizens.

Equal Protection clause

A provision in the Fourteenth Amendment of the U.S. Constitution that requires state governments to treat individuals in similar situations equally.