In the New Keynesian model, an increase in current total factor productivity
A)increases output and increases employment.
B)increases output and increases the real interest rate.
C)decreases output and increases the real interest rate.
D)decreases output and decreases employment.
E)does not affect output and decreases employment.

Question

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The Answer of In the New Keynesian model, an increase in current total factor productivity
A)increases output and increases employment.
B)increases output and increases the real interest rate.
C)decreases output and increases the real interest rate.
D)decreases output and decreases employment.
E)does not affect output and decreases employment.

In the New Keynesian Model, an Increase in Current Total