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.
Correct Answer:

Verified
Correct Answer:
Verified
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