In the New Keynesian Model, an Increase in Current Total

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.